Monetary Policy Would Not Include

question 86

Multiple Choice

Monetary policy would not include

• A) increasing interest rates to control the money supply.
• B) a policy directed toward controlling credit.
• C) reducing the money supply in an effort to control inflation.
• D) increasing tax rates in an effort to control inflation.
• E) a Federal Reserve intervention in the economy.

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Definitions:

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.

Marginal Private Cost

The cost incurred by a firm for producing one additional unit of a good, exclusive of any external costs.

Technology Spillovers

Benefits that firms or countries obtain by imitating or learning from the innovations of others, often without incurring the cost of innovation.

Subsidies

Financial assistance grants or tax breaks provided by the government to support businesses, organizations, or individuals, encouraging production or consumption of certain goods and services.