When the Federal Reserve Wishes To, in the Long Run

question 57

Multiple Choice

When the Federal Reserve wishes to, in the long run, decrease inflation it

• A)will increase the money supply by buying bonds.
• B)will increase the money supply by selling bonds.
• C)will decrease the money supply by selling bonds.
• D)has no policy options that will accomplish this.

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Definitions:

Motivate

To provide a reason, incentive, or encouragement for someone to act or behave in a particular way.

Achievement

Achievement refers to something accomplished, particularly by superior ability, special effort, great courage, or a notable feat, often recognized because of its significance.

Prosocial Behavior

Engaging in actions intended to benefit others, such as helping, sharing, or providing comfort.

Empathy And Sympathy

Empathy involves the ability to understand and share the feelings of another, while sympathy refers to feelings of pity and sorrow for someone else's misfortune.