Which of the Following Is NOT a Reason the Fed

question 91

Multiple Choice

Which of the following is NOT a reason the Fed changes the rate of growth of the money supply?

• A) to influence aggregate demand
• B) to shift the demand for money curve
• C) to influence the amount of consumption
• D) to influence the amount of investment

---

Definitions:

Legitimate Power

Authority that is recognized and accepted by others within an organizational structure.

Expert Power

The influence wielded by an individual or group due to their expertise, skills, or experience in a particular domain.

Referent Power

A form of influence derived from being admired, respected, or identified with, often because of personal attributes or associations.

Informal Structure

The network of personal and social relationships that arise naturally within an organization, contrasting with the formal organizational structure.