If Indicators Like Weak Demand and Falling Commodity Prices Caused

question 60

Multiple Choice

If indicators like weak demand and falling commodity prices caused concern about deflation (falling prices) , what could the Fed do to head off the deflationary threat?

• A) increase the reserve requirements imposed on banks
• B) buy bonds in order to expand the money supply
• C) increase the discount rate
• D) increase the national debt

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Definitions:

Black Friday

An annual shopping event the day after Thanksgiving in the United States, known for significant sales and discounts by retailers.

Consumer Decision Process

The stages a consumer goes through before, during, and after purchasing a product, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Customer Complaint Services

Services offered by businesses to address and resolve complaints and issues raised by customers.

Negative Word

A term or expression with connotations that evoke unpleasant or undesirable emotions or associations.