If the Fed Wants to Decrease the Quantity of Money

question 136

Multiple Choice

If the Fed wants to decrease the quantity of money, it can

• A) purchase U.S. government securities.
• B) raise income tax rates.
• C) decrease the government budget deficit.
• D) sell U.S. government securities.

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Definitions:

Teratogen

Environmental agent, such as a virus, a drug, or radiation, that can interfere with normal prenatal development and cause developmental abnormalities.

Birth Defect

An abnormality in structure, function, or metabolism present at birth that results in physical or mental disability or is fatal.

Cesarean Delivery

A surgical procedure used to deliver a baby through incisions in the mother's abdomen and uterus.

HIV

A virus known as Human Immunodeficiency Virus targets the immune system and, without treatment, can cause Acquired Immunodeficiency Syndrome (AIDS).