Which of the Following Would NOT Decrease the Supply of Money

question 134

Multiple Choice

Which of the following would NOT decrease the supply of money in a fiat money economy?

• A) The Federal Reserve sells gold.
• B) The Federal Reserve decides to sell existing Treasury securities.
• C) The Federal Reserve increases the required reserve ratio.
• D) The Federal Reserve increases the discount rate.
• E) Fewer deposits are made in banks.

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Definitions:

Sample Proportion

The ratio of members within a sample that have a particular attribute to the total number of members in the sample.

Level Shift

A sudden change in the baseline level of a time series dataset.

Cyclic Variation

Represents recurrent fluctuations in a time series data over a period longer than one year, often tied to economic, environmental, or social cycles.

Indications

Signs or symptoms that suggest the presence of a particular condition or the need for a specific treatment or intervention.