If a Central Bank Wants to Implement a Contractionary Policy

question 93

Multiple Choice

If a central bank wants to implement a contractionary policy that decreases real GDP, it conducts an open market operation by ________ securities. Bank reserves ________ and the supply of loanable funds ________. The quantity of money ________.

• A)selling; decrease; decreases; decreases
• B)purchasing; decrease; decreases; decreases
• C)purchasing; decrease; increases; decreases
• D)selling; increase; increases; increases
• E)purchasing; increase; increases; increases

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Definitions:

Assessment

The process of evaluating or estimating the nature, quality, or ability of someone or something through tests and observations.

Ritual Closure

The act of formally ending a process or event, often with a specific action or ceremony.

Emotional Exhaustion

A state of feeling extremely fatigued or drained due to accumulated stress from emotional demands.

Uncertain Loss

A form of grief or mourning related to a loss that lacks clarity or closure, making it difficult for individuals to process and move forward.