In the Short-Run Macro Model,an Open-Market Purchase of Bonds by the Fed

question 173

Multiple Choice

In the short-run macro model,an open-market purchase of bonds by the Fed will

• A) raise the interest rate,reduce spending,and increase output
• B) raise the interest rate,reduce spending,and decrease output
• C) lower the interest rate,reduce spending,and decrease output
• D) lower the interest rate,increase spending,and decrease output
• E) lower the interest rate,increase spending,and increase output

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Definitions:

Unhealthy Air

Air that is contaminated with pollutants at levels which are harmful to human health and the environment.

Urban Areas

Regions characterized by high human population density and vast human-built features in comparison to the areas surrounding them.

Ratio

A quantitative relationship between two numbers showing the number of times one value contains or is contained within the other.

Atmospheric Layer

A region in the Earth's atmosphere differentiated by characteristics such as temperature and composition, including the troposphere, stratosphere, mesosphere, thermosphere, and exosphere.