If Real GDP Exceeds Potential GDP, to Move the Economy

question 1

Multiple Choice

If real GDP exceeds potential GDP, to move the economy to potential GDP, the Reserve Bank

• A) raises the cash rate to decrease real GDP but not potential GDP.
• B) lowers the cash rate to increase potential GDP but not real GDP.
• C) lowers the cash rate to decrease real GDP but not potential GDP.
• D) raises the cash rate to increase potential GDP but not real GDP.
• E) raises the cash rate to decrease both real GDP and potential GDP.

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Definitions:

Rule 163

Without a specific context, this refers to a regulatory or procedural guideline within a particular legal, financial, or institutional framework that may differ significantly in content across contexts.

1933 Act

Officially known as the Securities Act of 1933, this legislation was enacted to protect investors by requiring transparency in the financial statements of publicly traded companies.

Communications Not Deemed A Prospectus

Information shared about an investment opportunity that does not legally constitute a formal offer to sell securities.

Securities Act Of 1933

A U.S. federal law enacted to ensure transparency in financial statements so investors can make informed decisions about investments, and to establish laws against fraud in the securities industry.