Which of the Following Is an Example of a Contractionary

question 121

Multiple Choice

Which of the following is an example of a contractionary monetary policy?

• A)Transfer payments to poor families are reduced.
• B)The Fed buys government securities in the open market.
• C)The discount rate is raised.
• D)The required reserve ratio is lowered.
• E)Anything the Fed does to shift the money supply to the right is a contractionary policy.

---

Definitions:

General

Pertaining to or affecting all or most people, places, or things; widespread.

Spearman's "g" Factor

A theory proposed by Charles Spearman that suggests human intelligence is a single general cognitive ability that can be measured and quantitatively expressed.

Early IQ Tests

Early IQ tests were assessments developed to measure intellectual abilities and potential, often criticized for their cultural and socioeconomic biases.

Cerebral Cortex

The outer layer of the cerebrum, playing a key role in memory, attention, perception, awareness, thought, language, and consciousness.