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If the Federal Reserve Wanted to Increase the Money Supply

question 181

Multiple Choice

If the Federal Reserve wanted to increase the money supply, it could _____ the required reserve ratio, _____, and _____ bonds on the open market.


Definitions:

Compensating Differentials

Differences in wages that result from differences in working conditions. Risky jobs usually pay higher wages; highly desirable jobs usually pay lower wages.

Annual Salary

Annual Salary is the fixed amount of money or compensation paid to an employee by an employer over a year for their services.

Occupational Segregation

The distribution of people across and within occupations and jobs, based significantly on demographic characteristics, notably gender or race.

Demographic Characteristics

The statistical characteristics of human populations, such as age, sex, and income, used especially to identify markets.

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