When the Economy Is in a Recession,the Fed Can ________

question 183

Multiple Choice

When the economy is in a recession,the Fed can ________ the federal funds rate,which ________ aggregate demand and ________ real GDP.

• A)lower;increases;decreases
• B)raise;decreases;increases
• C)lower;increases;increases
• D)raise;increases;decreases
• E)lower;decreases;decreases

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Definitions:

Food Stamps

A government-issued coupon or electronic card system used to assist in purchasing food for those in need.

Official Poverty Line

The minimum level of income deemed adequate in a particular country to live, which is used to determine who is classified as impoverished or in need of financial assistance.

Urban Family

A family unit residing within a city or densely populated area, which may face unique living, economic, and social conditions distinct from rural families.

Income Inequality

The unequal distribution of income within a population, where wealth is concentrated in the hands of a few.