During 2001-2004, the Fed Injected Additional Reserves into the Banking

question 104

Multiple Choice

During 2001-2004, the Fed injected additional reserves into the banking system, which reduced the federal funds rate and other short-term interest rates. Other things constant, what is the most likely short-run impact of this policy?

• A) an increase in the rate of unemployment
• B) a reduction in the growth of employment
• C) an increase in aggregate demand and real GDP
• D) a reduction in the long-run rate of inflation

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Definitions:

Malnourished

A condition in which a deficiency, excess, or imbalance of energy, protein, and other nutrients causes measurable adverse effects on tissue/body form, function, or clinical outcome.

Physical Activity Guidelines

Official recommendations intended to inform individuals on the types and amounts of physical activity beneficial for health.

Muscle-Strengthening Activities

Exercises or physical activities designed to improve the strength, power, and endurance of muscles.

Faint

A brief loss of consciousness typically resulting from a decrease in blood flow to the brain.