If the Fed Buys Bonds in the Open Market,which of the Following

question 149

Multiple Choice

If the Fed buys bonds in the open market,which of the following will likely NOT happen?

• A) Investment spending increases.
• B) Short-term interest rates increase.
• C) Aggregate demand increases.
• D) The monetary base increases.

---

Definitions:

Role

A function or position that an individual occupies in a social, relational, or organizational context, often defining expected behaviors and responsibilities.

Penfield Map

A representation of the motor cortex and sensory cortex in the human brain, illustrating the correspondence between body parts and their neurological representation, based on Wilder Penfield's research.

Speech Area

Regions in the brain, primarily located in the left hemisphere, involved in the processing and production of language.

Electrical Stimulation

A therapeutic treatment that uses electrical current to cause a single muscle or a group of muscles to contract, thereby improving muscle strength, pain relief, and repairing tissue.