Which of the Following Is NOT True of Tightening of Monetary

question 42

Multiple Choice

Which of the following is NOT true of tightening of monetary policy?

• A) Banks' supplies of funds are depleted through open-market operations
• B) Interest rates fall
• C) The dollar may increase in value
• D) Bank lending is reduced

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Definitions:

Certain Stimuli

Specific environmental or internal triggers that evoke a physiological or psychological response.

Interplay

The way in which two or more things have an effect on each other.

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Environment

The surrounding physical, social, and cultural conditions in which an organism or community lives and interacts.