Which of the Following Fed Actions Would Both Decrease the Money

question 83

Multiple Choice

Which of the following Fed actions would both decrease the money supply?

• A)buy bonds and raise the reserve requirement
• B)buy bonds and lower the reserve requirement
• C)sell bonds and raise the reserve requirement
• D)sell bonds and lower the reserve requirement

---

Definitions:

Tables

Arrangements of data in rows and columns that systematically display information.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than its trading partners.

Total Output

Total output refers to the total value of all goods and services produced in an economy over a specific period.

Specialization

The process by which individuals or entities focus on producing a single or a few products or services, leading to increased efficiency and productivity in the economy.