Which of the Following Would Lead the Fed to Increase

question 57

Multiple Choice

Which of the following would lead the Fed to increase the money supply under an interest rate rule?

• A) an unexplained decrease of money demand
• B) an increase in taxes
• C) a decrease in spending that caused the money demand curve to decrease
• D) an increase in spending that caused the money demand curve to increase
• E) a decrease in government spending.

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Definitions:

Pounds Sterling

The official currency of the United Kingdom.

Temporal Method

A method of currency translation in accounting where foreign currency balances are translated to the reporting currency using exchange rates depending on the timing of the original transaction.

Brazil Reals

The official currency of Brazil, denoted as BRL and symbolized as R$.

Temporal Method

An exchange rate conversion method that uses specific rates depending upon the timing of the original acquisition of assets and liabilities.