If the Economy Weakens, There Is ____ Pressure on Interest

question 5

Multiple Choice

If the economy weakens, there is ____ pressure on interest rates. If the Federal Reserve increases the money supply there is ____ pressure on interest rates (assume that inflationary expectations are not affected) . ​

• A)upward; upward
• B)upward; downward
• C)downward; upward
• D)downward; downward

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Definitions:

Transfer Payments

Cash or in-kind benefits given to individuals as outright grants from the government.

Double-Entry Bookkeeping

An accounting method that records each transaction in two accounts, ensuring that the total debits equals the total credits and maintaining the balance of the accounting equation.

Aggregate Output

The total quantity of goods and services produced in an economy in a given period.

Transfer Payment

A payment made by the government to individuals, without the government receiving any goods or services in return.