Use the Following to Answer Questions

question 88

Multiple Choice

Use the following to answer questions :
Figure: The Money Supply and Aggregate Demand
-(Figure: The Money Supply and Aggregate Demand) Look at the figure The Money Supply and Aggregate Demand. If the economy is in a recessionary gap, the Federal Reserve will _____ Treasury bills, which will _____ the money supply and _____ interest rates. This is shown in panel _____.

• A)sell; decrease; raise; (b)
• B)buy; decrease; lower; (a)
• C)buy; increase; lower; (a)
• D)sell; increase; lower; (a)

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Definitions:

Acetylcholine

A neurotransmitter involved in many functions including muscle contraction, arousal, and memory formation.

Norepinephrine

A neurotransmitter and hormone, involved in the body's response to stress, increasing heart rate, blood pressure, and blood sugar levels.

Dopamine

A neurotransmitter involved in many functions, including motivation, reward, attention, and the regulation of movement and emotional responses.

Serotonin

A neurotransmitter that plays a key role in regulating mood, anxiety, appetite, and sleep, among other functions.