Which of the Following Explains Why the Money Supply Is

question 90

Multiple Choice

Which of the following explains why the money supply is not completely controlled by the Federal Reserve?

• A) The actions of private individuals and banks can increase or decrease the money supply via the money multiplier.
• B) The president can issue an executive order that can increase or decrease the money supply.
• C) The Treasury has say over when the Federal Reserve can increase or decrease the money supply.
• D) The actions of banks, which determine reserve requirements, can increase or decrease the money supply via the spending multiplier.
• E) Congress has authority to veto any monetary policy enacted by the Federal Reserve.

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Definitions:

Median

The middle value in a data set where half the numbers are higher and half are lower, or a central point or value.

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A contemporary interpretation of the traditional potlatch ceremony, often referring to excessive spending and consumption practices.

World View

The fundamental cognitive orientation of an individual or society encompassing natural philosophy, fundamental existential and normative postulates, or themes, values, emotions, and ethics.