Which of the Following Policy Actions by the Fed Would

question 111

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) an increase in the discount rate
• D) a decrease in the discount rate

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Definitions:

Dual-Earner

Refers to households where both partners are employed and contribute financially.

Flexible Work

A work arrangement that allows for adjustments in work hours, locations, or duties, often to improve work-life balance.

Fixed Schedules

A type of scheduling arrangement where tasks or activities are planned to occur at specific, predetermined times without variation.

Marriage

A legally and socially sanctioned union between individuals that establishes rights and obligations between them, as well as with their children and in-laws.