Which of the Following Would Lead to a Rapid Growth

question 166

Multiple Choice

Which of the following would lead to a rapid growth of the money supply in the future?

• A)the use of large excess reserves by banks to extend additional loans
• B)a reduction in government expenditures to reduce the size of the federal deficit
• C)an increase in government expenditures financed by taxes
• D)an increase in the interest rate the Fed pays banks holding excess reserves

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Definitions:

Nucleophilic

Describes a chemical species that donates an electron pair to an electrophile to form a chemical bond in a reaction.

Solvolysis

The decomposition of a chemical compound by reaction with a solvent.

Aqueous Ethanol

A solution where ethanol is dissolved in water, commonly used as a solvent in various chemical reactions and processes.

Cyclohexyl Bromide

An organic compound consisting of a cyclohexane ring substituted with a bromine atom, commonly used in organic synthesis.