The Value of Money Falls

question 112

Multiple Choice

The value of money falls.This might be because the Federal Reserve

• A)bought bonds,which increased the money supply.
• B)bought bonds,which decreased the money supply.
• C)sold bonds,which increased the money supply.
• D)sold bonds,which decreased the money supply.

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Definitions:

Preempts

Refers to the legal principle that federal law takes precedence over state laws in areas where the federal government has been granted authority.

Equal Protection

A constitutional principle in the United States that requires states to govern impartially, not discriminating between individuals or groups particularly in rights and responsibilities.

Fourteenth Amendment

An amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States and prohibits states from denying any person equal protection under the law.

Federal Supremacy

The principle that federal law takes precedence over state law in the United States under the Supremacy Clause of the U.S. Constitution.