If the Federal Reserve Wished to Engage in Expansionary Monetary

question 18

Multiple Choice

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

• A)raise the primary credit rate.
• B)purchase government debt.
• C)raise the reserve ratio.
• D)sell government debt.

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Definitions:

Economists

Individuals dedicated to analyzing the creation, dissemination, and consumption patterns of goods and services.

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The act of making choices between alternatives to achieve a goal or solve a problem.

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The extent to which resources are used in the most productive way possible to produce desired goods and services while minimizing waste or inefficiency.

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A metaphorical representation of the total wealth or economic resources available for allocation or distribution within an economy.