If the Market Federal Funds Rate Were Below the Target

question 12

Multiple Choice

If the market federal funds rate were below the target rate, the response from the Fed would likely be to:

• A)Raise the required reserve rate
• B)Purchase U.S.Treasury securities
• C)Sell U.S.Treasury securities
• D)Raise the discount rate

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Definitions:

Positive Reinforcement

A method in behavioral psychology where a desirable stimulus is introduced after a behavior, increasing the likelihood of that behavior being repeated.

Negative Reinforcement

A type of operant conditioning that occurs when a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Laboratory Experiments

Controlled research studies conducted in a lab setting to test hypotheses by manipulating variables.

Assessment Techniques

Methods and tools used to evaluate individuals’ cognitive, emotional, and behavioral functioning, often for diagnostic and treatment planning purposes.