A Purchase of Government Debt as Part of Open Market

question 48

Multiple Choice

A purchase of government debt as part of open market operations would be an example of

• A)expansionary fiscal policy.
• B)expansionary monetary policy.
• C)contractionary fiscal policy.
• D)contractionary monetary policy.

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under the terms of an existing invoice.

Sold Merchandise

Refers to the goods or products that a company has sold to its customers as part of its ordinary business operations.

Sales Tax

A tax levied on sales of goods and services, typically calculated as a percentage of the sale price.

Inventory Shrinkage

The loss of inventory that can occur from theft, damage, or administrative errors.