If the Fed Is Trying to Make Interest Rates Go

question 39

Multiple Choice

If the Fed is trying to make interest rates go down, it may want

• A) the money supply to decrease.
• B) the price level to decrease.
• C) unemployment to decrease.
• D) investment to decrease.

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Definitions:

Accredited Investor

An individual or entity recognized as capable of investing in certain types of high-risk financial products, based on income, net worth, or professional experience.

Net Worth

The total value of an individual's or entity's assets minus liabilities, representing the financial health or wealth at a point in time.

Income

The monetary payment received for goods or services, or the earnings from investment over a particular period of time.

Equity Financing

The sale of shares of stock in exchange for cash.