Which One of the Following Actions Is the Federal Reserve

question 35

Multiple Choice

Which one of the following actions is the Federal Reserve most likely to take if it is concerned about a slowing economy?

• A)lower the tax rate
• B)lower the discount rate
• C)increase the call rate
• D)increase the tax rate
• E)increase the discount rate

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Definitions:

Marginal Revenue

The boost in income derived from selling an extra unit of a good or service.

Maximizing Profits

The goal of increasing a company's earnings to the highest possible level through various strategies and operational improvements.

Total Profit

The financial gain made by a business after subtracting all expenses, taxes, and costs from total revenues.

Profit-Maximizing

A strategy in which a firm seeks to achieve the highest possible profit from its operations, often by adjusting output or prices.