The RBA Can Stimulate the Economy by _____, All of Which

question 28

Multiple Choice

The RBA can stimulate the economy by _____, all of which shifts the aggregate demand to the _____.

• A)increasing the money supply; right
• B)increasing the money supply; left
• C)decreasing the interest rate; left
• D)increasing the interest rate; right

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Definitions:

J.P. Morgan

An influential American banker and financier who played a significant role in the development of the United States' financial system by financing railroads and helping to organize U.S. Steel, General Electric, and other major corporations.

Banking Syndicate

A group of banks that come together to jointly finance a large project or loan, sharing the risk.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and a decline in industrial output.

Staggering

Astonishing or deeply shocking in scale, magnitude, or degree.