Which of the Following Monetary Policies Will Increase Money Supply

question 26

Multiple Choice

Which of the following monetary policies will increase money supply?

• A)An increase in the discount rate
• B)An increase in the reserve requirement
• C)Open market purchases by the Fed
• D)The Fed selling government bonds
• E)An increase in the federal funds rate

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Definitions:

Original Legislation

Laws or legal acts that are introduced for the first time by a legislative body.

John Maynard Keynes

A British economist whose theories on government intervention in economies (Keynesian economics) have had a profound influence on modern economic and political theory.

British Economist

Refers to an economist from Britain, often notable for contributions to economic theory or policy.

Previous Economists

Scholars and thinkers who have contributed to the study and development of economic theories and principles in the past.