Which of the Following Would Provide the Most Accurate Description

question 203

Multiple Choice

Which of the following would provide the most accurate description of events when monetary authorities increase the size of chartered banks' excess reserves?

• A)A fall in interest rates decreases the money supply, causing an increase in investment spending, output, and employment.
• B)A rise in interest rates increases the money supply, causing a decrease in investment spending, output, and employment.
• C)The money supply is decreased, which increases the interest rate, and causes investment spending, output, and employment to decrease.
• D)The money supply is increased, which decreases the interest rate, and causes investment spending, output, and employment to increase.

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Definitions:

Pronoun

A grammatical unit that substitutes for nouns or noun phrases, whose referents are previously known in the context.

Groundlings

Historically, audience members who stood in the pit of the Elizabethan theatres, most notably in Shakespeare's time.

Pronoun

A word that takes the place of a noun, such as 'he,' 'they,' or 'it,' used to avoid repetition.

Globe Theatre

A historic theater in London associated with William Shakespeare, known for its open-air, circular design.