When Current Real Output Exceeds Potential Real Output, the Federal

question 128

Multiple Choice

When current real output exceeds potential real output, the Federal Reserve will _____ interest rates in an effort to fight _____.

• A) increase; a recession
• B) decrease; a recession
• C) decrease; inflation
• D) increase; inflation

---

Definitions:

Child's Temperament

Refers to the innate traits that determine a child's approach to the world, including their activity level, reactivity, and the way they regulate emotions.

Adaptability

The ability to adjust to new conditions, challenges, or environments effectively.

Stranger Anxiety

The fear and caution exhibited by infants and young children when encountering unfamiliar individuals.

Infant's Capacity

The potential or ability of an infant to develop skills and accomplish tasks, often measured through milestones in physical, cognitive, and emotional development.