To Reduce the Effects of Crowding Out Caused by an Increase

question 91

Multiple Choice

To reduce the effects of crowding out caused by an increase in government expenditures,the Federal Reserve could

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

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Definitions:

Embezzlement

The dishonest act of taking funds or property for oneself that has been entrusted to care for, but is actually owned by another individual.

Monthly Payments

Regular payments made in a partitioned amount over a specified period, commonly associated with loans or leases.

Duress

Coercion or force exerted upon someone to compel them to act against their will or make a legal agreement under pressure.

Wrongful

Actions or behavior that are illegal, unjust, or not correct according to law or equity.