Which of the Following Is an Appropriate Monetary Policy If

question 87

Multiple Choice

Which of the following is an appropriate monetary policy if the Fed wants to increase the money supply?

• A) an increase in the required reserve ratio
• B) an increase in the discount rate
• C) purchases of bonds in open market operations
• D) an increase in taxes on interest income

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Definitions:

Natural Resources

Raw materials and resources provided by nature that can be utilized for economic gain, such as minerals, forests, water, and arable land.

Economic Integration

The process by which different countries agree to remove trade barriers between them, increasing the exchange of goods and services as a single market or through various degrees of shared economic policies.

Corporate Codes

Guidelines and principles that outline ethical standards, corporate governance, and social responsibility expected within a corporation.

Enforcement Mechanism

Procedures or methods used to enforce compliance with laws, regulations, or agreements.