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:

Labor Unions

Organizations representing workers in various industries to negotiate wages, working conditions, and benefits on their behalf.

Social Equality

Social equality refers to a state of affairs in which all individuals within a society have the same status in certain respects, including civil rights, freedom of speech, property rights, and equal access to social goods and services.

Northern State

In the context of the American Civil War, a Northern state refers to any of the states that were part of the Union, opposing the seceding Confederate Southern states.

Common Schools

Early public schools in the United States aimed at providing basic education to children of all social classes.