Which of the Following Policy Actions by the Fed Would

question 111

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:

Biological Perspective

An approach in psychology that examines psychological disorders and behaviors from a biological standpoint, focusing on genetics, neurotransmitters, and the anatomy of the brain.

Cognitive Perspective

A psychological approach that focuses on how people think, understand, and know about the world.

Evolutionary Perspective

A theoretical approach in psychology that explains human behavior and mental processes in terms of their adaptive value and evolutionary history.

Psychodynamic Perspective

A psychological approach that emphasizes unconscious psychological processes (for example, wishes and fears of which we're not fully aware), and contends that childhood experiences are crucial in shaping adult personality.