Which of the Following Is an Example of a Contractionary

question 111

Multiple Choice

Which of the following is an example of a contractionary monetary policy?

• A)Reduction in the amount of transfer payments made to poor families
• B)Purchase of U.S.government securities in the open market
• C)Increase in the discount rate
• D)Decrease in the required reserve ratio
• E)Increase in the tax rate

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Definitions:

Unearned Rent

Income received by a property owner for which the services (use of property) have not yet been provided.

Expense Accounts

Accounts used to track money spent or costs incurred in a business's operational activities.

Asset Accounts

Accounts that track the value of a company's economic resources, or assets, such as cash, inventory, property, and equipment.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.