If the Fed Buys Treasury Bills,then

question 205

Multiple Choice

If the Fed buys Treasury bills,then

• A)the price of Treasury bills will rise.
• B)the market rate of interest on Treasury bills will fall.
• C)the price of Treasury bills will rise AND the market rate of interest on Treasury bills will fall.
• D)neither the price nor the market rate of interest on treasury bills will be affecteD.

Understand the concept of aggregate expenditure and its relationship with fiscal policy.

Recognize the role of government in affecting economic variables through fiscal policy.

Identify the fiscal measures to close a recessionary gap.

Understand how fiscal policy influences real GDP and employment.

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Definitions:

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.

Glucose

A simple sugar and an important energy source in living organisms, also one of the main products of photosynthesis.

Bacterium's Resource

Bacterium's Resource refers to the nutrients and environmental conditions that support the growth and survival of bacteria.

Niche

The totality of an organism’s adaptations, its use of resources, and the lifestyle to which it is fitted in its community; how an organism uses materials in its environment as well as how it interacts with other organisms; also called ecological niche. See fundamental niche and realized niche.