Which Action Could the Fed Use to Decrease the Money

question 28

Multiple Choice

Which action could the Fed use to decrease the money supply?

• A) an open market purchase
• B) an increase in the required reserve ratio
• C) a tax increase
• D) a decrease in the discount rate

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Definitions:

Synthesizing Mind

The ability to integrate ideas from different sources into coherent understandings, often associated with creativity and critical thinking.

Gardner

A reference to Howard Gardner, an American developmental psychologist known for his theory of multiple intelligences.

Leadership Grid

A model for understanding leadership styles based on concern for people and production.

Concern For Production

Focuses on the emphasis a manager or organization places on the output and productivity levels of its operations.