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

question 75

Multiple Choice

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

• A)sell; fall
• B)buy; fall
• C)sell; rise
• D)buy; rise

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Definitions:

Treated

Subjected to a process or treatment, in the context of material, data, or medical treatment, with the aim of changing its properties or outcomes.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on the willingness to pay.

Antitrust Laws

Regulations established to prevent monopolies and promote competition among businesses.