Which of the Following Policy Actions by the Fed Would

question 245

Multiple Choice

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

• A) An open market purchase of government securities.
• B) A decrease in required reserve ratios.
• C) A decrease in the discount rate.
• D) An open-market sale of government securities.

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Definitions:

Pleasure Principle

A psychoanalytic concept proposed by Freud that suggests individuals seek pleasure and avoid pain to satisfy biological and psychological needs.

Reality Principle

A mechanism functioning within the conscious and unconscious that weighs the costs and benefits of an action before deciding to act.

Ego

In the realm of psychoanalytic theory, this refers to the aspect of one's personality that balances the desires of the id, the moral guidelines of the superego, and the practicalities of the real world.

Electra Complex

A psychoanalytic theory proposing a girl's psychosexual competition with her mother for possession of her father.