Which Statement(s) Is(are) True? I

question 140

Multiple Choice

Which statement(s) is(are) true? I. The Fed is required to promote economic growth accompanied by full employment, stable prices, and moderate long-term interest rates.
II) To fight high unemployment, the Fed must stimulate the economy. If the stimulus leads to inflation, the goal of promoting full employment conflicts with the goal of price stability.
III) The Fed may have to stimulate the economy to promote economic growth, which can lead to inflation. If the Fed is fighting inflation, it may have to raise interest rates, which conflicts with the goal of moderate long-term interest rates.

• A) I only
• B) II and III only
• C) I and III only
• D) I, II, and III

---

Definitions:

Markdown

A reduction from the original or list price of goods, often to encourage sales.

Table Saws

Tools with a fixed blade and a flat surface, used for cutting large pieces of wood with precision.

Markdown Rate

The percentage decrease from the original price of an item to its new sale price.

Raisins

Dried grapes often used in cooking and baking or eaten as a snack.