_______________________ Is When a Central Bank Acts to Decrease the Money

question 39

Multiple Choice

_______________________ is when a central bank acts to decrease the money supply in an effort to control an economy that is expanding too quickly.

• A) Expansionary monetary policy
• B) Expansionary fiscal policy
• C) Contractionary monetary policy
• D) Contractionary fiscal policy
• E) Countercyclical monetary policy

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Definitions:

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Investor Aversion

A reluctance or aversion among investors to take on risky investments, preferring safer, more predictable returns instead.

Capital Gains

The increase in the value of an investment or real estate that gives it a higher worth than the purchase price.

Tax Treatment

The application of revenue law to a financial transaction, affecting how it is taxed.