Which of the Following Policy Actions by the Fed Would

question 57

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:

Pavlovian Conditioning

A form of learning in which a neutral stimulus comes to elicit a response after being paired with a stimulus that naturally brings about that response, named after Ivan Pavlov.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Reinforcement Theory

Reinforcement Theory is a psychological principle that suggests behavior is shaped by its consequences, with positive reinforcement encouraging and negative reinforcement discouraging certain actions.

Performance Evaluations

Systematic assessments of an employee's job performance and overall contribution to a company.