Which of the Following Policy Actions by the Fed Would

question 245

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) A decrease in the discount rate.
• D) An open-market sale of government securities.

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Definitions:

Virginia Plan

A proposal by Virginia delegates for a bicameral legislative branch during the drafting of the United States Constitution, focusing on proportional representation.

Philadelphia Convention

The gathering in 1787 that drafted the Constitution of the United States in Philadelphia, also known as the Constitutional Convention.

Congress Representation

The elected individuals who serve in the United States Congress, including members of the House of Representatives and the Senate, representing the American people.

Virginia Plan

A proposal drafted by James Madison and presented by Edmund Randolph to the Constitutional Convention in 1787, suggesting a national government with legislative, executive, and judicial branches structured primarily around population or financial contributions, favoring larger states.