The Fed Raised Interest Rates in 2004 and 2005

question 11

Multiple Choice

The Fed raised interest rates in 2004 and 2005.This implies,other things the same,that the Fed

• A)increased the money supply because it was concerned about unemployment.
• B)increased the money supply because it was concerned about inflation.
• C)decreased the money supply because it was concerned about unemployment.
• D)decreased the money supply because it was concerned about inflation.

---

Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue, indicating the company's financial performance over a period.

Net Cash Flow

The difference between a company's cash inflows and outflows within a given period, indicating the company's cash liquidity.

Accounts Receivable

Payables to a company from clients for the use or delivery of goods or services, not yet reimbursed.

Inventory

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.