The Fed Can Close a Recessionary Gap By

question 125

Multiple Choice

The Fed can close a recessionary gap by:

• A)increasing fiscal expenditure.
• B)increasing taxes.
• C)decreasing taxes.
• D)selling U.S.government bonds.
• E)lowering the discount rate.

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Definitions:

United States

A country located in North America, consisting of 50 states and a federal district, known for its significant economic and political influence globally.

Income Inequality

The uneven distribution of income within a population, leading to disparities in wealth and living standards among different socio-economic groups.

Countries

Distinct territorial entities recognized as independent states, typically characterized by their own government, population, and defined geographical boundaries.

Lowest Level

The minimum or most basic level of something, often referring to the foundation or starting point.