Suppose There Is a Fed Purchase of Bonds and Simultaneous

question 33

Multiple Choice

Suppose there is a Fed purchase of bonds and simultaneous tax cut.We know with certainty that this combination of policies must cause

• A)an increase in the interest rate (i).
• B)a reduction in i.
• C)an increase in output (Y).
• D)a reduction in Y.

---

Definitions:

Social Interaction

The process by which individuals act and react to those around them, critical for the development of social skills and relationships.

Discriminative Stimuli

Environmental cues or signals that indicate the availability of reinforcement or punishment, guiding behavior.

Cognitive Mediator

An internal process that occurs in the mind, influencing the relationship between environmental stimuli and an individual's response.

Collateral Behavior Change

A change in behaviors not directly targeted by an intervention but that occurs as a secondary effect of the intervention.