If the Fed Sells Government Bonds on the Open Market,which

question 144

Multiple Choice

If the Fed sells government bonds on the open market,which of the following is likely to occur?

• A)The money supply will expand.
• B)The market rate of interest on government bonds will increase.
• C)The market rate of interest on corporate bonds will decrease.
• D)The amount of investment spending will increase.

---

Definitions:

Innovation Sequence

A series of steps or processes that lead to the creation and implementation of new ideas, products, or methods.

Idea Generation

The process of creating, developing, and communicating new ideas or concepts.

Implementation

The process of putting a decision or plan into effect within an organization to achieve specific goals or outcomes.

Diffusion

The process by which an innovation, idea, or trend spreads through a population or society.