Which of the Following Policy Actions by the Fed Would

question 65

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:

Probability

A measure of the likelihood that a given event will occur, expressed as a number between 0 and 1.

Finite Population Correction Factor

A factor applied to the computation of the standard error when sampling from a finite population, to adjust for the size of the population relative to the sample size.

FPC

Finite Population Correction, a factor applied in sample size calculations to adjust for sampling from a finite population, ensuring more accurate results.

Standard Error

A statistical metric that measures the accuracy with which a sample distribution represents a population, calculated as the standard deviation of the sampling distribution.