Which of the Following Fed Policies Would Help the Economy

question 118

Multiple Choice

Which of the following Fed policies would help the economy out of a recession?

• A)Open market purchases of government securities
• B)Open market sales of government securities
• C)An increase in the discount rate
• D)An increase in reserve requirements

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Definitions:

Total Return

The overall return on an investment, including both capital gains and dividends or interest, over a specific period.

Dividend Yield

The ratio of a company's annual dividend payments to its share price.

Capital Gains Yield

reflects the price appreciation of a security or an investment, showing the percentage increase in the investment's value over a period.

Deviations

Instances of departing from an established course or accepted standard.