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:

Degeneracy

A situation in linear programming where more than one solution can lead to the optimal value, or when small changes to the coefficients greatly affect the solution's outcome.

Closed Path

In graph theory, a path that starts and ends at the same vertex without traversing the same edge more than once.

Satisfactory Solutions

Decisions or outcomes that meet the minimum requirements or criteria for acceptance, often applied in contexts of limited information or resources.

Transportation Model

An optimization and planning tool used in logistics to determine the most efficient and cost-effective way of distributing goods from several suppliers to several consumers.