Which of the Following Will Result in a Decrease in the Money

question 107

Multiple Choice

Which of the following will result in a decrease in the money supply?

• A) a tax cut
• B) a decrease in reserve requirements
• C) a decrease in the discount rate
• D) an increase in the discount rate

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Definitions:

Convenience Product

A type of product that is widely available and requires minimal effort from the consumer to purchase, often bought out of convenience.

Discretionary Product

Products that are non-essential and purchased with disposable income; the purchase can be delayed without significant consequence.

Oral Contraceptives

A type of birth control that is taken by mouth, including pills that prevent ovulation.

Estrogen

The principal female hormone, regulating reproductive functions and the development of secondary sex characteristics.