Which of the Following Monetary Policies Would Be Appropriate to Close

question 95

Multiple Choice

Which of the following monetary policies would be appropriate to close a recessionary gap?

• A)A tax cut
• B)A decrease in government purchases
• C)An increase in reserve requirements
• D)The Fed's purchase of U.S.government securities
• E)The Fed's raising the discount rate

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Definitions:

Reliable

The quality of being consistently good in performance, allowing someone or something to be trusted.

Scientific Management

Uses systematic study of job components to develop practices to increase people’s efficiency at work.

Frederick Taylor

is known as the father of scientific management, emphasizing efficiency and productivity through the systematic study of work processes.

Paired Comparisons

A method used to evaluate, rank, or make choices between options by comparing them in pairs.