If the Federal Reserve Wished to Engage in Contractionary Monetary

question 62

Multiple Choice

If the Federal Reserve wished to engage in contractionary monetary policy it could

• A)lower the primary credit rate.
• B)raise the federal funds rate target.
• C)lower the reserve ratio.
• D)purchase government debt.

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Definitions:

Pay

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Mutual Fund

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Annual Return

The percentage gain or loss on an investment over a one-year period.

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