select the correct answer. which action can the federal reserve take to pursue a tight - money policy? a…

select the correct answer. which action can the federal reserve take to pursue a tight - money policy? a. raise tax rates on all taxpayers to increase revenues b. decrease the amount of money in the economy c. regulate trading between banks and customers d. prevent the government from running a deficit e. increase the amount of money in the economy

select the correct answer. which action can the federal reserve take to pursue a tight - money policy? a. raise tax rates on all taxpayers to increase revenues b. decrease the amount of money in the economy c. regulate trading between banks and customers d. prevent the government from running a deficit e. increase the amount of money in the economy

Answer

Brief Explanations:

A tight - money policy aims to reduce the money supply in the economy to control inflation or cool down an over - heating economy. Raising tax rates is a fiscal policy measure (not a Federal Reserve action). Regulating bank - customer trading is not directly related to tight - money policy. Preventing government deficit is also not a typical tight - money action. Increasing the money supply is the opposite of a tight - money policy. Decreasing the amount of money in the economy is a key action in a tight - money policy.

Answer:

B. decrease the amount of money in the economy