Federal Reserve Actions That Increase Nominal Interest Rates and Decrease

question 138

Multiple Choice

Federal Reserve actions that increase nominal interest rates and decrease the money supply:

• A)close a recessionary gap.
• B)close an expansionary gap.
• C)raise the rate of inflation.
• D)raise bond prices.

---

Definitions:

Probability Distribution

An equation in mathematics that predicts the probabilities of distinct possible occurrences during an experiment.

Daily Sales

The total quantity or amount of products sold or transactions made in one day.

Registered Voters

Individuals who have completed the necessary procedures to be eligible to vote in an election.

Random Sample

A subset of individuals chosen from a larger set, where each individual is selected randomly and entirely by chance, ensuring that every subset of the population has an equal probability of being chosen.