If the Interest Rate Is Above the Fed's Target,the Fed

question 123

Multiple Choice

If the interest rate is above the Fed's target,the Fed should

• A)buy bonds to increase the money supply.
• B)buy bonds to decrease the money supply.
• C)sell bonds to increase the money supply.
• D)sell bonds to decrease the money supply.

---

Definitions:

Behavior Theory

A theory that suggests that behaviors are learned and maintained through interactions with the environment, including stimuli and reinforcements.

Psychobiological

Relating to the biological underpinnings of psychological phenomena, emphasizing the interaction between biological processes and behavior.

Humanistic

Relating to an approach in psychology that emphasizes individual worth, personal growth, and the concept of self-actualization.

Phobic Disorder

An anxiety disorder characterized by an intense and irrational fear of specific objects, activities, or situations.