When Conducting an Open-Market Purchase,the Fed

question 43

Multiple Choice

When conducting an open-market purchase,the Fed

• A)buys government bonds,and in so doing increases the money supply.
• B)buys government bonds,and in so doing decreases the money supply.
• C)sells government bonds,and in so doing increases the money supply.
• D)sells government bonds,and in so doing decreases the money supply.

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Definitions:

Verbal Protocols

A research method in which participants verbalize their thoughts as they perform a task, used to gather data on cognitive processes.

Maintenance Rehearsal

A cognitive process that involves repeatedly verbalizing or thinking about a piece of information to keep it in working memory longer.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the information to be remembered or making connections between that information and known information.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing.