If the Fed Increases the Monetary Base by $40 Billion

question 2

Multiple Choice

If the Fed increases the monetary base by $40 billion through open-market operations:

• A) GDP will increase by $40 billion.
• B) the price level will increase by $40 billion.
• C) the U.S. government debt held by the public has been reduced by $40 billion.
• D) government spending has increased by $40 billion.

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Definitions:

Revival Movements

Religious movements focused on reawakening faith among believers, often characterized by passionate preaching and community gatherings.

Publicity Stunts

Intentional acts or events designed to attract public attention, often used by individuals, organizations, or brands to generate media coverage.

P.T. Barnum

Phineas Taylor Barnum was an American showman, politician, and businessman remembered for promoting celebrated hoaxes and for founding the Barnum & Bailey Circus.

Religious-Based Reform

Describes changes or improvements in society, law, or institutions that are motivated or influenced by religious beliefs or organizations.