Multiple Choice
Which of the following is an example of a contractionary monetary policy?
A) Transfer payments to poor families are reduced.
B) The Fed buys government securities in the open market.
C) The discount rate is raised.
D) The required reserve ratio is lowered.
E) Anything the Fed does to shift the money supply to the right is a contractionary policy.
Correct Answer:
Verified
Correct Answer:
Verified
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