The Money Supply Decreases If the Fed

question 22

Multiple Choice

The money supply decreases if the Fed

• A)sells Treasury bonds.The larger the reserve requirement,the larger the decrease will be.
• B)sells Treasury bonds.The smaller the reserve requirement,the larger the decrease will be.
• C)buys Treasury bonds.The larger the reserve requirement,the larger the decrease will be.
• D)buys Treasury bonds.The smaller the reserve requirement,the larger the decrease will be.

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Definitions:

Spongy Bone

A porous type of bone tissue found at the ends of bones and within the vertebral bones, characterized by a honeycomb-like structure.

Compact Bone

The dense, hard outer layer of bones that provides strength, structure, and resistance to the body.

Bony Plates

Bony plates are rigid structures of dense bone forming the protective external layer or armor on certain animals, such as stegosaurs and armadillos.

Lacunae

Small spaces within bone or cartilage tissue that house cells such as osteocytes in bone or chondrocytes in cartilage.