Beyond the Fed's Immediate Control,a Wave of Pessimistic Economic Forecasts

question 25

Multiple Choice

Beyond the Fed's immediate control,a wave of pessimistic economic forecasts in the banking industry can effectively ________ e and thus ________ the money supply.

• A)raise,raise
• B)raise,reduce
• C)reduce,raise
• D)reduce,reduce

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Definitions:

Capital Goods

Physical assets that a company uses in the production process to manufacture products and services that consumers will later use.

Opportunity Cost

Giving up possible benefits from other solutions when a single solution is chosen.

Economic Growth

The increase in the inflation-adjusted market value of the goods and services produced by an economy over a period of time.

Entrepreneurship

The act of creating, organizing, and running a new business venture, typically characterized by risk-taking and innovation to achieve profit and growth.