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:

Impact

The effect or influence of one thing on another, often measured by the change or outcome that results.

Absolute Threshold

Absolute threshold is the minimum intensity of a stimulus that one can perceive 50% of the time, marking the boundary at which a stimulus becomes detectable to the senses.

Subliminal Threshold

The level below which a stimulus is not strong enough to be perceived or consciously noticed, yet may influence behavior or cognition.

Adaptation Threshold

The point at which a stimulus is of sufficient intensity to begin to produce an effect or be noticed.