Table 17-3 -Refer to Table 17-3

question 102

Multiple Choice

Table 17-3
$$\begin{array} { | c | c | c | c | } \hline \text { Year } & \text { Potential Real GDP } & \text { Real GDP } & \text { Price Level } \\\hline 2014 & \$ 14.0 \text { trillion } & \$ 14.0 \text { trillion } & 150 \\\hline 2015 & 14.5 \text { trillion } & 14.8 \text { trillion } & 154 \\\hline\end{array}$$
-Refer to Table 17-3.Consider the hypothetical information in the table above for potential real GDP,real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy.If the Fed wants to keep real GDP at its potential level in 2015,it should

• A)buy Treasury securities.
• B)sell Treasury securities.
• C)decrease the required reserve ratio.
• D)decrease income taxes.

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Definitions:

Postsynaptic Receptor

A receptor located on the postsynaptic cell membrane that binds neurotransmitters released from the presynaptic neuron during synaptic transmission.

More Negative

An expression indicating an increase in negative attributes or effects.

Less Negative

Refers to a situation or condition that is not as adverse or undesirable as it could be; somewhat improved.

Action Potential

A temporary reversal in the electrical potential across a plasma membrane that occurs when a cell has been activated by a stimulus, essential for nerve impulse conduction.