If Businesses Are Producing at Capacity,and the Nation Is Experiencing

question 54

Multiple Choice

If businesses are producing at capacity,and the nation is experiencing almost full employment a very low rate of unemployment - less than 2%) ,the Fed may decide to:

• A)Lower interest rates.
• B)Raise taxes.
• C)Lower taxes.
• D)Increase interest rates.

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Definitions:

Profit Motives

The primary goal or motivation for businesses to maximize their profits, which drives business operations, strategic decisions, and overall objectives.

Ethical Values

Fundamental beliefs that guide behaviors and decision-making processes based on notions of what is right and wrong.

Norms

Are rules or standards for the behavior of group members.

Normative Theory

A theoretical framework that prescribes how things should or ought to be, often used in ethical, political, or policy debates.