When the Federal Reserve Injects Money into the Banking System

question 44

Short Answer

When the Federal Reserve injects money into the banking system, it initially causes an excess _____ of money. Equilibrium in the money market is reestablished through a(n) _____ in the price level.

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Definitions:

TBW

Total body water; the total amount of water in the human body, expressed as a percentage of body weight.

Scapula

A large, flat triangular bone on the posterior side of the shoulder, also known as the shoulder blade.

Flexes

Refers to the action of bending a limb or joint.

Rotates

To move or turn around a central point or axis.