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:

Behavioral Approaches

Methods in psychology focused on understanding and changing people's behaviors through techniques such as reinforcement and conditioning.

Cognitive-Behavioral Training

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Relaxation Training

Techniques and practices designed to reduce stress and anxiety, promoting a state of calmness.

Nicotine Replacement Therapy

A method used to help people stop smoking by providing nicotine in forms other than cigarettes.