An Increase in Which of the Following Leads to a Decline

question 7

Multiple Choice

An increase in which of the following leads to a decline in the monetary base?

• A) Float
• B) Discount loans
• C) Foreign deposits at the Fed
• D) SDRs

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Definitions:

Inflation

The jump in the average price tag of goods and services, contracting the realm of purchasing possibilities.

Worst Recession

A particularly severe or damaging period of economic decline, characterized by significant decreases in GDP, high unemployment, and failing businesses.

Depression

An economic depression is a prolonged period of significant decline in economic activity across a region or country, characterized by high unemployment, low consumer spending, and a decrease in industrial production.

National Output

The total value of all goods and services produced within a country's borders in a given time period.