The Federal Reserve Lowers Interest Rates

question 110

Multiple Choice

The Federal Reserve lowers interest rates. As a result, in the short run, real GDP ________ and the price level ________.

• A) increases; rises
• B) increases; falls
• C) decreases; rises
• D) decreases; falls

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Definitions:

Inflexible

Lacking flexibility; unable to change or be adapted to different circumstances.

Interactions

The processes by which entities or individuals influence or communicate with each other, impacting behaviors, feelings, or thoughts.

Vaccinations

The administration of vaccine substances to stimulate an individual's immune system to develop adaptive immunity to a pathogen.

Autism

A developmental disorder characterized by difficulties with social interaction and communication, and by restricted or repetitive patterns of thought and behavior.