If a Government Wanted to Use Monetary Policy to Increase

question 79

Multiple Choice

If a government wanted to use monetary policy to increase economic growth, which of the following steps should be taken?

• A) Decrease interest rates to increase the amount of money in supply.
• B) Increase the amount of foreign currency kept on reserve in U.S. banks.
• C) Increase the amount of public revenue for investment by raising taxes.
• D) Increase the government spending on public works projects.
• E) Print a larger amount of money to increase the money supply.

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Definitions:

Fraud

Intentional deception made for personal gain or to damage another individual.

Voidable Contract

A voidable contract is a legal agreement that may be annulled or declared invalid by one of the parties due to certain defects, while remaining valid until such action is taken.

Result

The outcome or consequence of an action, process, or situation, often measured to determine success or failure.

Contract

An accord among several parties that is legally obligatory and subject to legal enforcement.