In the Case of Recession, a Detrimental Effect of Pressure

question 45

Multiple Choice

In the case of recession, a detrimental effect of pressure on the Fed that causes it to act immediately is that it could possibly

• A)add to the probabilities of a policy promoting economic growth.
• B)improve the data for the Fed.
• C)lead to inflation later.
• D)increase the likelihood of stability.

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Definitions:

Transaction

An agreement or exchange between two parties that is recorded and has an economic impact on the finances of a business.

Journal

A detailed record where all financial transactions of a business are initially recorded, before being transferred to the general ledger.

Posting Reference

A notation or code that links journal entries to the corresponding ledger accounts, facilitating tracking and reviewing of financial transactions.

Journal Page Number

The specific page number in a journal where transactions are recorded, aiding in tracking and referencing financial activities.