If the Fed Wants to Decrease the Money Supply,it Can

question 82

Multiple Choice

If the Fed wants to decrease the money supply,it can __________ the required reserve ratio,conduct an open market __________,or __________ the discount rate.

• A) raise; purchase; lower
• B) lower; purchase; lower
• C) raise; sale; raise
• D) lower; sale; lower
• E) none of the above

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Definitions:

Convergent Validation

The process of assembling diverse pieces of information that converge on a common conclusion.

Interjudge Agreement

The degree of consistency or accord in the assessments or ratings of different judges or observers.

Constructivism

The philosophical view that reality, as a concrete entity, does not exist and that only ideas (“constructions”) of reality exist.

Interjudge Agreement

The extent to which different judges or observers agree in their assessment or evaluation of a particular characteristic or trait.