Which of the Following Monetary Policies Would Be Appropriate to Close

question 79

Multiple Choice

Which of the following monetary policies would be appropriate to close a recessionary gap?

• A) a tax cut
• B) a decrease in government purchases
• C) an increase in reserve requirements
• D) the Fed purchasing U.S. government securities
• E) the Fed raising the discount rate

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Definitions:

Venture Capitalist

An investor who provides capital to startup companies and small businesses with potential for long-term growth.

Franchisee

The purchaser of a franchise.