When the Fed Purchases Securities from a Bank,it __________ Reserves

question 106

Multiple Choice

When the Fed purchases securities from a bank,it __________ reserves and ____________ the money supply.

• A) decreases; decreases
• B) increases; increases
• C) decreases; increases
• D) increases; decreases
• E) has no impact on; has no impact on

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Definitions:

Social Judgment Theory

A theory that explores how people form impressions, make judgments, and process persuasive messages based on different points of view.

Latitude of Acceptance

It is a concept in psychology and communication studies that describes the range of ideas that a person finds tolerable or worth considering.

Peripheral Route

A method of persuasion that relies on superficial cues rather than the strength of arguments, often influencing attitudes without deep processing.

Inoculation Theory

A social psychological and communication theory that explains how attitudes and beliefs can be made more resistant to change by exposing them to counter-arguments.