If the Fed Wanted to Stimulate the Economy to Limit

question 218

Multiple Choice

If the Fed wanted to stimulate the economy to limit the effects of a recessionary gap, then it should ________ the federal funds rate in order to ________ the real interest rate and thereby ________ investment.

• A) lower; lower; increase
• B) lower; raise; increase
• C) raise; raise; decrease
• D) lower; lower; decrease

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Definitions:

Recruiting

Forming a pool of qualified applicants from which management can select employees.

Qualified Applicants

Qualified applicants are individuals who meet the necessary educational, work experience, and skill requirements for a particular job position.