Which of the Following Is an Expansionary Monetary Policy

question 31

Multiple Choice

Which of the following is an expansionary monetary policy?

• A)The Federal Reserve increasing the discount rate for commercial banks
• B)The Federal Reserve increasing commercial bank's reserve requirements
• C)An increase in taxes imposed by the government
• D)The Federal Reserve buying government bonds from commercial banks
• E)A decrease in government's expenditures

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Definitions:

Wage Limitation

A cap on the amount of wages that can be considered for certain tax calculations or benefits, such as Social Security taxes.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status and adjusted annually for inflation.

Dependent

A person who relies on another, especially a family member, for financial support and qualifies for potential tax benefits.

Part-Time Job

Employment with fewer hours per week than a full-time job, often offering limited benefits and lower wages.