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:

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The rightful or morally justified power held by an entity or individual, which is recognized and followed by others.

Unconscious Desire

Wishes or wants that influence behavior without becoming part of conscious awareness.

Ethical Concerns

Considerations related to determining what is right or wrong in a moral sense, often applied in professional and personal decision-making.

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The scientific research and analysis of human behavior, emotions, and mental processes.