Which of the Following Fed Actions Will Decrease the Money

question 54

Multiple Choice

Which of the following Fed actions will decrease the money supply?

• A) an open market purchase of Treasury bills
• B) an increase in the required reserve ratio
• C) a decrease in the discount rate relative to the federal funds rate
• D) all of the above
• E) none of the above

---

Definitions:

Different Utilities

The concept relating to the varied usefulness or satisfaction that consumers derive from products or services.

Roommates

Individuals who share a living accommodation, where each person typically has their own room but shares other facilities like the bathroom and kitchen.

Household Decision-making

The process by which individuals or families make choices about consumption, savings, and investments.

Rationality

The quality of being based on or in accordance with reason or logic.