Which of the Following Statements Is FALSE

question 106

Multiple Choice

Which of the following statements is FALSE?

• A) Both monetary and interest rate targets cannot be pursued simultaneously.
• B) A reduction in the required reserve ratio increases the money supply and pushes down the equilibrium interest rate.
• C) An open market purchase reduces the money supply and pushes down the equilibrium interest rate.
• D) An open market sale decreases the money supply and pushes up the equilibrium interest rate.

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Definitions:

Molecular Level

Referring to the scale at which properties and behaviors of molecules, including interactions and reactions, can be studied and observed.

Alternate Pathway

A secondary or subsidiary route or method different from the main one, often used in biochemical reactions or processes.

Homogeneous Catalysts

Catalysts that exist in the same phase as the reactants in a chemical reaction, facilitating the reaction without being consumed.

Same Phase

A term referring to substances that are in the same state of matter (solid, liquid, gas) under the same conditions.