If the Fed Wants to Close a Contractionary Gap,it Might

question 133

Multiple Choice

If the Fed wants to close a contractionary gap,it might

• A)increase government spending
• B)increase taxes
• C)decrease taxes
• D)sell U.S.government bonds to banks
• E)lower the discount rate

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Office Equipment

The machinery, tools, and furniture used in an office environment to facilitate work, such as computers, printers, and desks.

Total Quality Management (TQM)

A management approach centered on continuous improvement, focusing on quality control across all areas of an organization.

Product Leadership

A strategy that aims to build a company’s reputation for cutting-edge products and innovation, leading the market through quality and new features.