In the 1970s, in Response to Recessions Caused by an Increase

question 192

Multiple Choice

In the 1970s, in response to recessions caused by an increase in the price of oil, the central banks in many countries increased their money supplies. The central banks might have done this by

• A)selling bonds on the open market, which would have raised the value of money.
• B)purchasing bonds on the open market, which would have raised the value of money.
• C)Selling bonds on the open market, which would have raised the value of money.
• D)purchasing bonds on the open market, which would have lowered the value of money.

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Definitions:

Take-Home Pay

Take-home pay is the amount of wages that an employee actually receives after all deductions, such as taxes and social security contributions, have been subtracted.

Gross Pay

The total amount of an employee's earnings before any deductions are made for taxes, benefits, and other payroll deductions.

Voluntary Deductions

Deductions from an employee's paycheck that are made with the employee's consent, such as for benefits, union dues, or retirement plans.

Interest-Bearing Note

A debt security that pays interest to the holder until it matures, at which point the principal is reimbursed.