In Figure 15

question 38

Multiple Choice

In Figure 15.3,the Fed can change the equilibrium interest rate from 2 percent to 6 percent by doing all of the following except

• A)Selling bonds in the open market.
• B)Raising the discount rate.
• C)Raising the reserve requirement.
• D)Decreasing the federal funds rate.

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Definitions:

Amygdala

A part of the brain involved in emotional processes, including fear and pleasure.

Pons

A part of the brainstem involved in controlling vital functions such as breathing and sleep cycles.

Hypothalamus

Located under the thalamus, this brain region is responsible for overseeing the activities of the autonomic nervous system and the pituitary gland, ensuring the regulation of body temperature, thirst, hunger, and other mechanisms vital for maintaining equilibrium within the body.

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).