If the Fed Were to Have Raised Interest Rates in the Months

question 40

Multiple Choice

If the Fed were to have raised interest rates in the months leading up to the 2012 presidential election,what might have been the expected outcome?

• A)The economy would have become stronger.-Consider This: Raising interest rates is likely to weaken the economy because the borrowing of money becomes more expensive.
• B)The economy would have weakened further.
• C)Imports would have increased.
• D)Unemployment would have decreased.

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Definitions:

Articles of Confederation

The original constitution of the 13 American states, adopted in 1781, which was eventually replaced by the U.S. Constitution in 1789.

Draft Constitution

A preliminary version of a constitution that outlines the fundamental principles and laws of a political entity that is subject to review, modification, and approval.

Shays' Rebellion

An armed uprising in Western Massachusetts and Worcester in response to a debt crisis among the citizenry and in opposition to the state government's increased efforts to collect taxes both on individuals and their trades.

Debt Relief

A measure or process through which a portion or all of someone's debt is forgiven or restructured to reduce the financial burden on the debtor.