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Which of the Following Would Constitute Contractionary Monetary Policy by the Fed

Question 145

Multiple Choice

Which of the following would constitute contractionary monetary policy by the Fed?


A) ​An increase in income tax rates, a cut in government spending, and an elimination of the investment tax credit
B) ​Open market sales of government securities, an increase in the discount rate, and an increase in reserve requirements
C) ​An increase in tariffs on imported goods and a decrease in foreign aid
D) ​Open market purchases of government securities, a cut in the discount rate, and an increase in reserve requirements

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