Which of the Following Would Constitute Contractionary Monetary Policy by the Fed

question 24

Multiple Choice

Which of the following would constitute contractionary monetary policy by the Fed?

• A)A decrease in the interest rate it pays on reserves
• B)Open market sales of government securities and an increase in the discount rate
• C)An increase in tariffs on imported goods and a decrease in foreign aid
• D)Open market purchases of government securities and a cut in the discount rate
• E)An increase in the reserve ratio and a cut in the discount rate

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Definitions:

External Locus of Control

The belief that one's outcomes in life are determined by external forces or chance rather than personal actions.

Internal Locus of Control

A psychological concept referring to individuals who believe that they have control over the events and outcomes in their lives, as opposed to external forces determining their fate.

Ethical Behavior

The practice of engaging in actions that are considered morally right and in accordance with societal standards.

Ethical Behavior

Conduct that is in alignment with accepted moral principles and values, demonstrating a commitment to fairness, integrity, and responsibility.