Which of These Statements Best Describes the Possible Effect of Efforts

question 35

Multiple Choice

Which of these statements best describes the possible effect of efforts by the Federal Reserve Board to lower interest rates?

• A)They can lead to lower capital gains tax rates.
• B)They can lead to higher unemployment in years of budget deficits.
• C)They can spur economic growth by increasing the cost of money for business.-Consider This: The Federal Reserve Board sets interest rates used by banks to borrow money.
• D)They can spur economic growth by increasing the available money supply.

---

Definitions:

Communication Process

The transmission of information and understanding from one person or group to another, involving a sender, message, medium, receiver, and feedback.

Texas Drawl

A distinctive southern accent or way of speaking associated with the people of Texas, characteristically slow and drawn out.

Prospective Customers

Individuals or businesses that are considered potential buyers for a company's products or services, but have not yet made a purchase.

Heavy-Equipment Manufacturer

A company that specializes in producing large machinery used in construction, mining, and other industries requiring heavy lifting and earthmoving.