Suppose That the Fed Decides to Decrease the Growth Rate

question 93

Multiple Choice

Suppose that the Fed decides to decrease the growth rate of the money supply in the United States.What is most likely to happen to the U.S.trade deficit and to GDP?

• A)The trade deficit will fall; GDP will fall.
• B)The trade deficit will rise; GDP will rise.
• C)The trade deficit will fall; GDP will rise.
• D)The trade deficit will rise; GDP will fall.

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Definitions:

Service Rate

The speed at which a service provider can deliver its service to customers, often measuring throughput in a system.

Distribution Of Service Times

The variation and pattern of times it takes for a service to be completed, often analyzed to improve process efficiency.