The Fed's Initial Step in Pursuing Restrictive Monetary Policy Using

question 304

Multiple Choice

The Fed's initial step in pursuing restrictive monetary policy using the federal funds rate is to

• A)announce a higher target.
• B)sell bonds to banks and the public.
• C)raise the discount rate.
• D)raise the prime interest rate.

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Definitions:

Projection

An ego defense mechanism whereby individuals attribute to other people characteristics or impulses they do not wish to acknowledge in themselves.

Defecating

The act of expelling feces from the body's large intestine through the anus.

Ego Ideal

A component of the personality comprising the standards and aspirations for behaviors that one strives to achieve.

Id

in Freudian psychoanalysis, it represents the part of the human psyche that is unconscious and contains the basic drives and instinctual desires.