When the Fed Sells Government Bonds in the Open Market

question 110

Multiple Choice

When the Fed sells government bonds in the open market:

• A) the monetary base increases and interest rates decrease.
• B) the monetary base decreases and interest rates increase.
• C) both the monetary base and interest rates decrease.
• D) both the monetary base and interest rates increase.

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Definitions:

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Attributes

Characteristics or properties that describe and identify different entities, objects, or individuals.

Attribution

The process by which individuals explain the causes of behavior and events, often attributing them to internal dispositions or external situations.

Dimensions

in the context of behavior, refers to the measurable attributes of actions, such as frequency, intensity, and duration.