Which of the Following Actions Is Most Likely to Lead

question 167

Multiple Choice

Which of the following actions is most likely to lead to an increase in the money supply?

• A) Fed purchases of government securities
• B) an increase in the required reserve ratio
• C) an increase in the discount rate
• D) none of the above

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Definitions:

Synergy

The concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.

Cost Complementarity

Occurs when the cost of producing one good decreases with the increase in production of another good, showing a synergy between the production processes of two goods.

Diseconomies Of Scope

The phenomenon where the cost of producing two or more products together is higher than producing them separately.

Economies Of Scope

cost advantages that enterprises obtain due to the efficient allocation and utilization of resources across multiple products or services.