Which of the Following Policies Can Be Adopted by the Fed

question 54

Multiple Choice

Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?

• A)Increase the market interest rate
• B)Purchase U.S.government securities
• C)Increase the discount rate
• D)Increase the price of consumer goods
• E)Increase the required reserve ratio

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Definitions:

Energized Circuit

A circuit that is under voltage and capable of providing electrical power to connected devices or equipment.

Extended Periods

Lengthy durations or time frames, often referring to the operation or application of something over a long period.

Centrifugal Switch

A device that opens or closes an electrical circuit based on the speed of the rotating shaft, commonly used in motors.