If Moderate Deficits Put ________ Pressure on Interest Rates,the Fed

question 86

Multiple Choice

If moderate deficits put ________ pressure on interest rates,the Fed may ________ bonds,leading to an increase in high-powered money.

• A)upward; sell
• B)upward; buy
• C)downward; sell
• D)downward; buy

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Definitions:

Puritans

Puritans were members of a group of English Protestants in the 16th and 17th centuries who sought to "purify" the Church of England from its "Catholic" practices.

Church of England

The primary state church in England, also known as the Anglican Church, characterized by a middle path (via media) between Roman Catholicism and Protestantism.

Political Interference

Involvement by political authorities in matters or decisions that typically require a degree of independence from governmental influence or control.

Woolens Industry

The sector of the economy focused on the production and distribution of goods made from wool, including clothing and textiles.