Which of the Following Is an Example of a Contractionary

question 121

Multiple Choice

Which of the following is an example of a contractionary monetary policy?

• A)Transfer payments to poor families are reduced.
• B)The Fed buys government securities in the open market.
• C)The discount rate is raised.
• D)The required reserve ratio is lowered.
• E)Anything the Fed does to shift the money supply to the right is a contractionary policy.

---

Definitions:

Stacking Questions

The practice of asking multiple questions without waiting for individual answers, often used to gather extensive information quickly.

Verbal Barrier

Refers to obstacles in communication that occur due to the linguistic style or language used, leading to misunderstandings or difficulty in expressing thoughts effectively.

Leading Question

A type of query that suggests its own answer or is structured in such a way that it guides the respondent towards a particular response.

Dropping Out

The act of leaving a school, course, or activity before completion, often resulting in the absence of a formal accreditation.