Use the Figure Below to Answer the Following Question

question 16

Multiple Choice

Use the figure below to answer the following question.

Figure 30.3.3
-Refer to Figure 30.3.3. The figure shows the economy of Freezone. Potential GDP is $350 billion. To return the economy to full employment, the central bank can ________ the overnight rate and ________ securities.

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

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Definitions:

Activation-Synthesis Theory

A hypothesis that dreams are created by the higher brain centers interpreting random activity from the lower brain during REM sleep.

Limbic System

A complex system of nerves and networks in the brain, involving various areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Burst Activity

Rapid firing of neurons in the brain, typically associated with specific behaviors or responses to stimuli.

Daily Life

Refers to the routine activities, tasks, and experiences that constitute an individual's regular day-to-day existence.