If the Fed Announced Its Intention to Sell Bonds,then It

question 16

Multiple Choice

If the Fed announced its intention to sell bonds,then it would be signaling that it was going to

• A)raise the money supply.It could do this to counter high unemployment.
• B)raise the money supply.It could do this to counter high inflation.
• C)reduce the money supply.It could do this to counter high unemployment.
• D)reduce the money supply.It could do this to counter high inflation.

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Definitions:

Beneficial

Having a positive effect; contributing to a favorable outcome or advantage.

Sooner Rather Than Later

A phrase encouraging prompt action or decision making to avoid potential problems or to seize opportunities quickly.

Two-Column List

A method used for organizing information or data into two distinct columns, often for comparison, contrast, or dual categorization purposes.

Buying

The action of purchasing goods or services.