If Businesses React to a Pessimistic Outlook and Decrease Spending,the

question 91

Multiple Choice

If businesses react to a pessimistic outlook and decrease spending,the Fed can counteract this by:

• A) decreasing money supply growth to spur the economy out of the recession.
• B) increasing money supply growth,lowering real interest rates,and encouraging borrowing.
• C) increasing government expenditures to spur the economy out of the recession.
• D) decreasing corporate taxes to encourage firms to increase their spending.

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Definitions:

Hopelessly Resigned

A state of acceptance without hope where an individual no longer resists a negative situation and expects no change for the better.

Trait Theorist

A trait theorist is a psychologist who studies and categorizes human personality characteristics into key qualities that predict behavior and psychological functioning.

Personality Inventory

A tool or questionnaire used in psychology to assess personality traits and characteristics of an individual.

Projective Test

A psychological assessment tool that involves interpreting ambiguous stimuli, thought to reveal hidden emotions and internal conflicts.