If the Fed Increases Its Open Market Purchases of Government

question 94

Multiple Choice

If the Fed increases its open market purchases of government securities,it exerts a downward pressure on the interest rate.Such a phenomenon is usually referred to as the ___________________ effect.

• A) income
• B) substitution
• C) open market
• D) liquidity
• E) expectations

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Definitions:

Visual Accommodation

The change in the thickness of the lens as the eye focuses on objects that are far away or close.

Lens

In psychology, often referred to metaphorically to describe the way individuals view the world based on their thoughts and experiences.

Photoreceptor Cells

Specialized cells in the retina of the eye responsible for converting light into signals that can be processed by the brain to create visual images.

Bipolar Cells

Cells in the retina that play a role in visual processing by transferring information from photoreceptors to ganglion cells.