Sometimes During Wars,government Expenditures Are Larger Than Normal

question 31

Multiple Choice

Sometimes during wars,government expenditures are larger than normal.To reduce the effects this spending creates on interest rates,

• A)the Federal Reserve could increase the money supply by buying bonds.
• B)the Federal Reserve could increase the money supply by selling bonds.
• C)the Federal Reserve could decrease the money supply by buying bonds.
• D)the Federal Reserve could decrease the money supply by selling bonds.

---

Definitions:

Dividend Clienteles

Groups of investors who prefer stocks of companies with a specific dividend policy that matches their income needs and tax situations.

Cyclical Dividend Policy

A dividend policy where the dividend payout is linked to the company's earnings or economic cycles.

Special Dividend Payments

One-time payments made by a company to shareholders, often signaling strong financial health or the distribution of extraordinary profits.