If the Fed Has Announced That It Plans on Lowering

question 321

Multiple Choice

If the Fed has announced that it plans on lowering the interest rate it will

• A) engage in expansionary open market operations, thereby decreasing the money supply.
• B) engage in expansionary open market operations, thereby increasing the money supply.
• C) engage in contractionary open market operations, thereby decreasing the money supply.
• D) engage in contractionary open market operations, thereby increasing the money supply.

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Definitions:

Cretaceous

The geological period between 145 and 66 million years ago, noted for the dominance of dinosaurs and the appearance of flowering plants.

Extinction Event

A significant loss of biodiversity occurring rapidly due to factors like climatic changes, habitat destruction, or the impact of humankind.

Triassic

The first period of the Mesozoic Era, occurring approximately 252 to 201 million years ago, marked by the recovery of life forms from the Permian extinction.