If the Fed's Policy Is Contractionary,it Will

question 79

Multiple Choice

If the Fed's policy is contractionary,it will

• A)use open market operations to buy Treasury bills.
• B)use open market operations to sell Treasury bills.
• C)lower the discount rate.
• D)lower the reserve requirement.

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Definitions:

Dependent Variable

The variable that is the subject’s response to, and dependent on, the level of the manipulated independent variable.

Internal Validity

The extent to which a study accurately demonstrates a cause-effect relationship by controlling for extraneous variables and bias.

Control Group

In an experiment, the group that does not receive the treatment or intervention being tested, serving as a benchmark for comparison.

Expectancy Effects

Phenomena in which the outcome of a study is influenced by the participants' or experimenters' expectations.