In an Effort to Address the Troubled Economy

question 47

Multiple Choice

In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal Reserve is expected to cut interest rates, quite possibly its last reduction in this downturn." Rates have not been this low "... since 2003, when the economy was growing at a snail's pace." www.csmonitor.com, 10/28/2008
The Fed's rate cuts will ________ bank reserves and ________.

• A) increase; increase the money supply and real GDP
• B) decrease; decrease the money supply and real GDP
• C) increase; increase the exchange rate and real GDP
• D) decrease bank reserves; decrease the exchange rate and real GDP

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Definitions:

Science

Employing rational thought to transition from noticeable, quantifiable data to conjectures and then to verifiable theories explaining those data.

Experimental Material

The group or class of objects or subjects that is being studied in an experiment.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.

FDA

The Food and Drug Administration, a federal agency of the United States responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.