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:

Goods

Tangible items that are produced or manufactured for sale and consumption.

Warehouse Storage

The use of a warehouse for holding goods in storage, typically until they are sold or transported to another location.

Common Carriage

The public transportation of goods or persons where the carrier offers services to the public under license or authority.

Bailments

A legal relationship in which physical possession of personal property is transferred from one person to another under agreement that the property will be returned or otherwise disposed of according to the owner's directions.