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:

American Psychiatric Association

A leading organization dedicated to the advancement of psychiatry and mental health.

Insanity Pleas

A legal defense where the defendant claims they were not responsible for their actions due to psychiatric illness at the time of the crime.

Burden of Proof

The obligation to present evidence to prove one's claim or argument, typically resting on the party who initiates legal action.

Insanity Standard

A legal concept used to determine the extent to which a person's mental illness impacts their ability to understand the nature and wrongfulness of their actions for criminal responsibility.