Which of the Following Would Constitute Contractionary Monetary Policy by the Fed

question 155

Multiple Choice

Which of the following would constitute contractionary monetary policy by the Fed?

• A)​An increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit
• B)​Open market sales of government securities, an increase in the discount rate, and an increase in reserve requirements
• C)​An increase in tariffs on imported goods and a decrease in foreign aid
• D)​Open market purchases of government securities, a cut in the discount rate, and an increase in reserve requirements

---

Definitions:

Discoloration

A change in color of the skin or surface, often indicating an abnormal condition or damage.

Vacuum Tube

An electronic device consisting of a sealed glass or metal enclosure containing electrodes used to control electron flow for amplifying, switching, or modifying a signal.

Needle

A slender, sharp instrument typically made of metal, used for injecting substances into the body or withdrawing fluids from it.

Syringe Method

A technique involving a syringe for injecting substances into the body, withdrawing fluids, or applying suction.