Contractionary Monetary Policy on the Part of the Fed Results

question 72

Multiple Choice

Contractionary monetary policy on the part of the Fed results in

• A)an increase in the money supply,an increase in interest rates,and an increase in GDP.
• B)a decrease in the money supply,an increase in interest rates,and a decrease in GDP.
• C)an increase in the money supply,a decrease in interest rates,and an increase in GDP.
• D)a decrease in the money supply,a decrease in interest rates,and a decrease in GDP.

---

Definitions:

Stop-Payment Order

An order by a bank customer to his or her bank not to pay or certify a certain check.

Subsequent Checks

Checks issued or actions taken following the initial or primary ones, typically as part of a series or sequence.

Drawer's Account

Refers to the bank account from which a check is drawn or payable.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payee's name printed on the document.