Which of the Following Is an Example of Monetary Policy

question 54

Multiple Choice

Which of the following is an example of monetary policy aiming to increase the rate of economic growth?

• A) a decrease in the cash rate
• B) an increase in the liquidity ratio
• C) the RBA selling government securities in the open market
• D) a decrease in the tax rate

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, personal property, or intellectual property.

Mutually Agreeable Transactions

Exchanges between parties that both participants consider beneficial or satisfactory.

Laissez-faire

An economic principle advocating minimal governmental interference in the operation of markets and businesses.

Government Intervention

Actions taken by the government to influence economic or social outcomes, such as regulations, subsidies, taxes, or direct control of markets.