To Offset the Effect of Households and Firms Deciding to Hold

question 268

Multiple Choice

To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency,the Federal Reserve could

• A)raise bank taxes.
• B)sell Treasury securities.
• C)raise government spending.
• D)lower the required reserve ratio.

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Definitions:

SSRIs

Selective Serotonin Reuptake Inhibitors (SSRIs) are a class of drugs used primarily to treat depression by increasing serotonin levels in the brain.

Rapid-acting Antidepressant

A type of antidepressant medication designed to offer relief from symptoms more quickly than traditional antidepressants.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, known for its potent effects on the central nervous system.

Amphetamines

A class of stimulant drugs that increase activity in the brain and are used to treat attention deficit hyperactivity disorder (ADHD) and narcolepsy.