Which of the Following Is an Action That the Fed

question 40

Multiple Choice

Which of the following is an action that the Fed uses to increase or decrease the money supply? ​

• A)buying or selling Treasury securities in the secondary market
• B)adjusting the tax rate imposed on income earned on Treasury securities
• C)adjusting the coupon rate on Treasury bonds
• D)selling Treasury securities in the primary market

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Definitions:

Total Expenses

The sum of all costs and expenses incurred by a business or individual, including operating expenses, cost of goods sold, and taxes.

Fixed Cost

Costs that do not change with the level of production or sales activities within a certain range or period.

Flexible Budget

A budget with the capacity to alter in response to shifts in activity volume or level.

Employee Salaries

The total amount paid to employees for their services over a specific period.