Which of the Following Monetary Policies Reduces Aggregate Demand and Output

question 142

Multiple Choice

Which of the following monetary policies reduces aggregate demand and output?

• A)A cut in the federal funds rate
• B)An open market purchase of government securities
• C)An increase in the discount rate
• D)A cut in the required reserve ratio

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Definitions:

Sensory Stimuli

External or internal inputs that are perceived by the sensory organs, leading to various forms of responses or reactions from an organism.

Coffee Aroma

The scent produced by coffee, often described as rich, warm, and inviting; this aroma is credited with providing psychological comfort and increasing alertness.

Sensory Receptor Cells

Specialized cells that detect and respond to specific stimuli from the external or internal environment, converting them into electrical impulses.

Transduction

The process of converting one form of energy into another, especially in sensory systems where physical stimuli are converted into nerve signals.