The Fed Is Said to Tighten Policy When It

question 19

Multiple Choice

The Fed is said to tighten policy when it

• A)decreases both the money growth and the federal funds rate.
• B)decreases the money growth and increases the federal funds rate.
• C)increases both the money growth and the federal funds rate.
• D)increases the money growth and decreases the federal funds rate.

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Definitions:

Basic Commands

Fundamental instructions or statements in programming that perform simple tasks, like input, output, or looping.

Arithmetic Operations

Basic mathematical operations such as addition, subtraction, multiplication, and division.

Logical Operations

Operations based on Boolean logic that return true or false, commonly used in conditions and loops.

Central Processing Unit

The primary component of a computer that performs most of the processing inside a computer by executing instructions from programs and apps.