If a Government Wanted to Use Monetary Policy to Increase

question 12

Multiple Choice

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

• A) Decrease the discount rate 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 available for investment by raising taxes.
• D) Increase the government spending on public works projects.

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Definitions:

Unit Cost

The cost incurred to produce, store, or purchase one unit of a product or service.

Modifying Style

Refers to altering the presentation or appearance of a document or webpage through changes in formats, layouts, or designs.

Make-Or-Buy Options

Decision-making process in businesses regarding whether to produce a product or service in-house or to purchase it from an external supplier.

Excess Productive Capacity

The ability of a firm to produce more than is required at the current level of demand, often leading to underutilization of resources.