If the Fed Wanted to Expand the Money Supply as Part

question 173

Multiple Choice

If the Fed wanted to expand the money supply as part of an antirecession strategy, it could

• A) increase the reserve requirements.
• B) buy U.S. securities on the open market.
• C) raise the discount rate.
• D) sell U.S. securities on the open market.

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Definitions:

Virus

A malicious software program designed to replicate itself and spread from one computer to another, often damaging host systems.

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Refers to the portion of RAM that is currently being used by processes and applications running on a computer.

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Copies or reproduces something exactly.

Wizard

A user interface element that guides users through a step-by-step process for completing a task or setting up a software application.