Suppose There Were a Large Decline in Net Exports

question 35

Multiple Choice

Suppose there were a large decline in net exports.If the Fed wanted to stabilize output,it could

• A)buy bonds to raise interest rates.
• B)buy bonds to lower interest rates.
• C)sell bonds to raise interest rates.
• D)sell bonds to lower interest rates.

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Definitions:

Superego

In psychoanalytic theory, the part of the personality that acts as a critical and moralizing force, guiding behavior to conform with societal standards.

Freud

An Austrian neurologist named Sigmund Freud created psychoanalysis, a therapy approach for mental illnesses that involves discussions between a patient and a psychoanalyst.

Unconscious Mind

A part of the mind that is inaccessible to the conscious mind but that affects behavior and emotions.

Conscious Mind

The aspect of the mind that involves awareness of the self, the environment, and one's thoughts and experiences.