Which of the following is an example of a contractionary monetary policy? a. a decrease in the required reserve ratio b. a purchase of U.S. government securities in the open market O c. an increase in the discount rate O d. an increase in the tax rate e. a reduction in the amount of transfer payments made to poor families घ

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Modern Macroeconomics And Monetary Policy
Section: Chapter Questions
Problem 7CQ
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Which of the following is an example of a contractionary monetary policy?
a. a decrease in the required reserve ratio
b. a purchase of U.S. government securities in the open market
c. an increase in the discount rate
d. an increase in the tax rate
e. a reduction
H
<
in the amount of transfer payments made to poor families
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Transcribed Image Text:9 Which of the following is an example of a contractionary monetary policy? a. a decrease in the required reserve ratio b. a purchase of U.S. government securities in the open market c. an increase in the discount rate d. an increase in the tax rate e. a reduction H < in the amount of transfer payments made to poor families # bike 2 bike jpg.jpg O
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