Which of the Following Will Reduce Inflation by Decreasing the Growth

question 115

Multiple Choice

Which of the following will reduce inflation by decreasing the growth rate of the money supply?

• A) A decrease in government spending.
• B) An increase in the discount rate.
• C) The purchase of securities in the open market by the Fed.
• D) An increase in automatic stabilizers.

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Definitions:

Annual Dividend

This refers to the total amount of dividends a company pays out to its shareholders per year.

Dividends Increase

An action by a company to raise the amount of money distributed to shareholders from its net income over a period.

Returns on The Stock

The income earned from an investment in stocks, including dividends and capital gains.

Dividend of $2.90

A specified amount of $2.90 paid to shareholders, typically on a per share basis, out of the company's earnings.