Your Roommate Is Having Trouble Grasping How Monetary Policy Works

question 178

Multiple Choice

Your roommate is having trouble grasping how monetary policy works.Which of the following explanations could you use to correctly describe the mechanism by which the Fed can affect the economy through monetary policy? Increasing the money supply

• A)lowers the interest rate,and firms increase investment spending.
• B)causes people to spend more because they know prices will rise in the future.
• C)raises the interest rate and consumers decrease spending on durable goods.
• D)lowers the interest rate,raises the value of the dollar,lowers the prices of exports,and raises net exports.

Grasp the difference between absolute threshold and difference threshold (just noticeable difference).

Distinguish between the processes of sensation and perception.

Recognize the role of sensory adaptation in perceiving constant stimuli.

Describe the process of transduction in the conversion of physical stimuli into neural signals.

---

Definitions:

Account Balances

The total amount of money in a financial account, calculated by adding all deposits and deducting any withdrawals.

Basic Format

Basic Format in the context of accounting and finance often refers to a standard or simplified way of presenting financial statements or data.

Journal Entries

The recordings of transactions in the accounting journals, which form the basis for all financial reporting and analysis.

Deferred Revenues

Deferred revenues represent income received by a company for goods or services yet to be delivered or performed, also known as unearned revenue.