If the Federal Reserve Conducts Open Market ________,The Money Supply

question 96

Multiple Choice

If the Federal Reserve conducts open market ________,the money supply ________,shifting the LM curve to the right,everything else held constant.

• A)purchases;decreases
• B)sales;decreases
• C)purchases;increases
• D)sales;increases

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Definitions:

Short-Term Loan

A short-term loan is a type of financing that is obtained for a relatively brief period, typically less than a year, to address immediate financial needs.

Financially Responsible

Refers to the ability or action of managing one's resources effectively, ensuring bills and debts are paid on time, and preparing for future financial obligations.

Guarantee

A formal promise or assurance that certain conditions will be met, including the quality or durability of a product, or the repayment of a loan.

Interest Rate

The percentage at which interest is charged or paid on borrowed or invested funds over a specific period of time.