According to the Theory of Rational Expectations, If the Fed

question 15

Multiple Choice

According to the theory of rational expectations, if the Fed uses open market operations in order to increase the supply of loanable funds, the ultimate effect on interest rates is definitely

• A)a reduction in interest rates.
• B)an increase in interest rates.
• C)no effect on the interest rates.
• D)the impact on interest rates cannot be determined.

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Definitions:

Heterosexism

The presumption of heterosexuality as the norm, which can result in discrimination or bias against non-heterosexual orientations and identities.

Systemic Discrimination

Discrimination that is ingrained in the policies, practices, and procedures of institutions, resulting in disadvantages to certain groups.

Natural Superiority

The belief in the inherent superiority of certain individuals, groups, or races over others, often without scientific basis.

Stereotype

A label that may have some basis in fact, but that has been grossly over-generalized and applied to a particular segment of the population or situation.