Use the Figure Below to Answer the Following Question

question 48

Multiple Choice

Use the figure below to answer the following question.
Figure 14.3.2
-Refer to Figure 14.3.2.The figure shows the economy of Freezone.Potential GDP is $250 billion. To return the economy to full employment, the central bank can _______ the overnight rate and _______ securities.

• A)lower; not change its holdings of
• B)lower; sell
• C)raise; buy
• D)raise; sell
• E)lower; buy

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Definitions:

Behavioral Component

Pertains to the aspects of psychology that involve observable human actions and responses in various situations.

Attitude Object

An entity such as a product, brand, or service that evokes a positive or negative response from consumers.

Affective Component

Part of an attitude that involves a person's feelings or emotions about an object, person, or event.

Emotional Reactions

The feelings or emotions that are provoked in response to stimuli, events, or interactions.