Which of the Following Represents an Action by the Federal

question 329

Multiple Choice

Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply?

• A) a decrease in the discount rate
• B) a decrease in federal spending
• C) selling government securities in the open market
• D) a decrease in the required reserve ratio

---

Definitions:

Property Taxes

Taxes levied on property owners by local governments based on the assessed value of their property, including land and buildings.

Laissez-Faire

A philosophy advocating minimal governmental intervention in the economy.

Economic Policy

This encompasses decisions by a government regarding its taxation, spending, and regulation practices to influence its country's economy.

Tax Reform Act

Legislation aimed at adjusting tax policies, which can include changes to tax rates, tax credits, and deductions to achieve economic or social objectives.