If the Combination R = 5% and Y = $100

question 83

Multiple Choice

If the combination r = 5% and Y = $100 billion is on the Fed rule line, we know that the combination r = 7% and Y = $100 billion would represent

• A) the Fed rule shifting to the right.
• B) the Fed rule shifting to the left.
• C) a movement up the Fed rule.
• D) a movement down the Fed rule.

---

Definitions:

Payment

The transfer of money, goods, or services from one party to another as a fulfillment of an obligation.

Possession

The state or fact of owning, having, or controlling something.

Secured Party

A lender, seller, or any other person in whose favor there is a security interest, including a person to whom accounts or chattel paper has been sold.

Collateral

Assets pledged by a borrower to secure a loan or ensure repayment, which can be seized by the lender in the event of default.