Which of the Following Actions by the Fed Would Cause

question 73

Multiple Choice

Which of the following actions by the Fed would cause the money supply to increase?

• A) purchases of government bonds from banks
• B) an increase in the reserve requirement
• C) an increase in the discount rate
• D) sales of government bonds to the public

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Definitions:

Controllable Margin

The portion of income that can be directly controlled or influenced by management decisions, often excluding fixed costs.

Operating Assets

Assets used in the day-to-day operations of a business, contributing to its ability to generate income.

Contribution Margin

The amount remaining from sales revenue after variable production costs have been deducted, contributing to covering fixed costs.

Controllable Margin

The portion of operating income that can be directly controlled or influenced by managers at certain levels of an organization.