In an Effort to Address the Troubled Economy

question 164

Multiple Choice

In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal Reserve is expected to cut interest rates, quite possibly its last reduction in this downturn." Rates have not been this low "... since 2003, when the economy was growing at a snail's pace." www.csmonitor.com, 10/28/2008
The "interest rates" the Fed is cutting is the

• A) reserve interest rate.
• B) Federal Funds rate.
• C) nominal long-term interest rate.
• D) real long-term interest rate.

Understand subject-verb agreement.

Identify correct verb forms in different contexts.

Apply rules for singular and plural verb forms in sentences.

Comprehend the usage of verbs in present simple tense.

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Definitions:

Import Quotas

Government-imposed limits on the quantity or value of goods that can be imported into a country.

Capital Flight

A phenomenon where money or assets rapidly flow out of a country, often in response to economic or political instability.

Loanable Funds

A term in economics that refers to all the money available for borrowing, encompassing both savings and credits created in the banking system.

National Saving

The total amount of savings generated within a country, which is equal to the sum of private and public savings.