If the Fed Lowers the Discount Rate at the Same

question 124

Multiple Choice

If the Fed lowers the discount rate at the same time it conducts an open market sale,it follows that

• A) the money supply will fall.
• B) the money supply will rise.
• C) the money supply will remain unchanged.
• D) cash leakages will rise.
• E) There is not enough information to answer this question.

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Definitions:

Binocular Disparity

The difference in the images on the left and right retinas, which is the basis for depth perception and three-dimensional vision.

Motion Parallax

A depth cue that involves images of objects at different distances moving across the retina at different rates.

Apparent Movement

The perception of movement in a stationary object due to rapid sequential presentation of images or due to the context in which the object is viewed.

Visual Field

The total area in which objects can be seen in the peripheral vision while the eye focuses on a central point.