If the Federal Reserve Were to Change from an Expansionary

question 22

Multiple Choice

If the Federal Reserve were to change from an expansionary to contractionary monetary policy,this would be an example of:

• A)unsystematic risk.
• B)systematic risk.
• C)independent risk.
• D)diversification risk.

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Definitions:

Excise Tax

Excise Tax is a tax levied on specific goods, services, or transactions, such as tobacco, alcohol, and gasoline, typically to discourage consumption or raise revenue.

Effective Supply

The total amount of a product or service that is available to consumers, taking into account both production levels and any factors that may influence availability.

Buyers

Persons or organizations that buy products or services for private consumption, for selling them again, or for manufacturing purposes.

Sellers

Individuals or businesses that offer goods or services for sale, contributing to the supply side of the market economy.