Which of the Following Is an Example of a Contractionary

question 47

Multiple Choice

Which of the following is an example of a contractionary monetary policy?

• A) a reduction in the amount of transfer payments made to poor families
• B) a purchase of U.S. government securities in the open market
• C) an increase in the discount rate
• D) a decrease in the required reserve ratio
• E) an increase in the tax rate

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