What Happens When the Fed Aims to Change Interest Rates

question 107

Multiple Choice

What happens when the Fed aims to change interest rates?

• A) It asks Congress to legislate new interest rates.
• B) It buys or sells government bonds on the open market to achieve the desired rate.
• C) It buys or sells dollars on the foreign exchange market to achieve the desired rate.
• D) It announces a new discount interest rate.

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Definitions:

Managerial Implications

Refers to the practical outcomes or effects of management theories, strategies, or decisions on organizational operations.

Content Theories

Focus on identifying specific factors that motivate individuals at work, including needs, desires, and goals that propel behavior.

Maslow

Refers to Abraham Maslow's hierarchy of needs, a psychological theory that ranks human needs in a pyramid, with physiological needs at the base and self-actualization at the top.

Alderfer

Refers to Clayton Alderfer's ERG theory on human needs and motivation, classifying needs into Existence, Relatedness, and Growth categories.