Which of the Following Is an Example of an Expansionary

question 115

Multiple Choice

Which of the following is an example of an expansionary monetary policy?

• A)Government purchases of goods and services decline.
• B)The discount rate is increased.
• C)The Fed sells U.S.government securities in the open market.
• D)The required reserve ratio is lowered.
• E)The income tax is lowered.

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Definitions:

Relative Deprivation Theory

A sociological theory suggesting that individuals who perceive themselves as having less resources than others will feel deprived and may become resentful or seek change.

Economic "Booms"

Periods of significant economic growth and prosperity, characterized by increased production, employment, and consumer spending.

Economic "Busts"

Periods of significant economic decline characterized by reduced levels of activity across the economy, often including increased unemployment and decreased spending.

Unionization

The process by which workers come together to form a union in order to collectively bargain for better wages, working conditions, and other employment terms.