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

question 108

Multiple Choice

If the Fed buys government bonds on the open market,which of the following will occur?

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

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Definitions:

Transcription Factors

Proteins that help regulate the expression of genes by binding to specific DNA sequences near genes.

Positional Information

The spatial and temporal cues that cells use during development to differentiate into the correct cell types and form complex structures.

Meganeura

An extinct genus of insects from the Carboniferous period, known to include some of the largest known flying insect species.