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:

Common Sense

The basic level of practical knowledge and judgment that we all need to help us live in a reasonable and safe way.

Thomas Paine

An influential political activist and writer whose works, including "Common Sense," contributed to the American Revolution.

New Government

The establishment of a new system of political authority, often following a revolution, reform, or major political change within a country.

First Continental Congress

A gathering of delegates from twelve of the Thirteen Colonies in 1774, which met to address grievances against British policies and to organize colonial resistance.