The Purpose of a Tight Money Policy Is to

question 52

Multiple Choice

The purpose of a tight money policy is to

• A)alleviate recessions.
• B)raise interest rates and restrict the availability of bank credit.
• C)run budget surpluses.
• D)increase investment spending.

---

Definitions:

Budding

Asexual reproduction in which a small part of the parent’s body separates from the rest and develops into a new individual; characteristic of yeasts and certain other organisms.

Basidia

Specialized spore-producing cells found in the reproductive structures of Basidiomycete fungi.

Asci

Asci are sac-like structures found in ascomycete fungi where the spores, called ascospores, are produced during sexual reproduction.

Mycorrhizae

Mutualistic associations of fungi and plant roots that aid in the plant’s absorption of essential minerals from the soil. Hyphae of ectomycorrhizal fungi coat plant roots; those of endomycorrhizal fungi penetrate plant cell walls (see arbuscules).