The Fed Can Change the Money Supply by Changing

question 53

Multiple Choice

The Fed can change the money supply by changing

• A) the required reserve ratio.
• B) marginal income tax rates.
• C) federal excise taxes.
• D) unemployment benefits.

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Definitions:

Deregulation

The process of removing government regulations and restrictions from certain areas of business or sectors of the economy to encourage efficiency and competition.

Reagan Presidency

The period of American leadership under Ronald Reagan, the 40th President of the United States, from 1981 to 1989, noted for its conservative policies.

Great Society

A set of domestic programs in the United States, launched by President Lyndon B. Johnson, aimed at eliminating poverty and racial injustice.