In a Recession,the Fed's Monetary Policy Aims to ________ the Real

question 164

Multiple Choice

In a recession,the Fed's monetary policy aims to ________ the real interest rate,________ aggregate demand,and ________ aggregate supply.

• A)increase;decrease;not change.
• B)decrease;increase;not change
• C)increase;not change;increase
• D)decrease;increase;increase
• E)increase;increase;increase

---

Definitions:

Translated

Converted from one language to another or, in financial terms, adjusted from one currency into another using the current exchange rate.

Remeasured

The process of adjusting the book value of a foreign subsidiary’s financial statements to reflect current exchange rates or the fair value of assets and liabilities.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Functional Currency

The currency of the primary economic environment in which an entity operates, typically the currency in which it principally generates and expends cash.