Which of the Following Policies Could the Fed Use to Lower

question 26

Multiple Choice

Which of the following policies could the Fed use to lower the interest rate?

• A) a tax cut
• B) selling government securities
• C) raising the discount rate
• D) reducing the required reserve ratio

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Definitions:

Consciousness Levels

Refers to the varying degrees of awareness individuals have of themselves and the environment around them.

Ego

In Freud’s theory, the logical, rational, largely conscious system of personality, which operates according to the reality principle.

Psychic Energy

A concept in psychoanalytic theory referring to the force or drive within individuals that motivates them to seek pleasure and avoid pain.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.