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:

Motivator-Hygiene Model

A theory proposed by Frederick Herzberg that suggests job satisfaction and dissatisfaction arise from two distinct sets of factors: motivators that lead to satisfaction and hygiene factors that, if not present, lead to dissatisfaction.

Comparison

The act of evaluating two or more items to identify similarities and differences.

Fairly Treated

The perception or reality of being treated with justice, equality, and respect.

Ethics Competency

The ability to understand, articulate, and enact principles of ethical conduct within professional and personal contexts, ensuring decisions are made with integrity and respect for others.