Suppose That the Current Federal Funds Rate Is Above the Federal

question 166

Multiple Choice

Suppose that the current federal funds rate is above the federal funds target rate.In order to lower the federal funds rate the Fed will ________________ securities on the open market which will ________________ the supply of reserves in the market for reserves,pushing the rate closer to the target rate.

• A) sell; increase
• B) purchase; increase
• C) purchase; decrease
• D) sell; decrease

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Definitions:

Overgeneralization

A cognitive distortion where a person draws broad, generalized conclusions from a single or few incidents, often leading to negative thinking and outcomes.

REBT

Rational Emotive Behavior Therapy, a form of psychotherapy that focuses on identifying and changing irrational beliefs that cause emotional distress.

Irrational Mistake

An error in thinking or belief that is not based on logic or rational judgment.

REBT Homework

Assignments given to clients in Rational Emotive Behavior Therapy (REBT) intended to help them practice cognitive, emotional, and behavioral skills outside of therapy sessions.