Exhibit 16-4 -In Exhibit 16-4, the Fed Can Return the Economy to the Economy

question 128

Multiple Choice

Exhibit 16-4
-In Exhibit 16-4, the Fed can return the economy to its potential output by

• A)selling US Treasury securities inthe open market
• B)lowering the discount rate
• C)by lowering the reserve requirenment
• D)buying US Treasury securities in the open market
• E)printing money

Understand the concept and significance of the harvest stage in a business’s lifecycle.

Analyze the importance of personality characteristics and commitment in successful entrepreneurship.

Understand the concept of locus of control and its importance in entrepreneurship.

Compare and contrast the roles and characteristics of entrepreneurs and small business managers.

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Definitions:

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Human Resources

The department within an organization that is responsible for managing employee-related processes including hiring, training, compliance, and benefits.

Developed Nations

Countries with advanced industrial infrastructure, high living standards, and sophisticated economies.

Capital Formation

The creation of capital goods, which are used to produce other goods and services. It is a measure of economic growth and development.