Interest Rates in the U

question 85

Multiple Choice

Interest rates in the U.S. and in major foreign economies

• A) are uncorrelated or very weakly correlated.
• B) tend to move in opposite directions.
• C) tend to move in the same direction.
• D) are the same when adjusted for inflation.

---

Definitions:

Tax Cuts

Reductions in the amount of taxes imposed by the government on individuals or businesses.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period.

Fiscal Programs

Government initiatives that involve expenditure and taxation decisions to influence the national economy.

2008-2009 Recession

A severe global economic downturn triggered by the financial crisis, marked by significant declines in consumer wealth, extensive layoffs, and a contraction in economic activity.