Which of the Following Scenarios Can Be Classified as Passive

question 180

Multiple Choice

Which of the following scenarios can be classified as passive policymaking?

• A) The Federal Reserve cuts the federal funds rate in order to increase economic activity.
• B) The federal government increases spending in order to create jobs.
• C) The Federal Reserve adjusts the money supply as appropriate to attain a target rate of inflation.
• D) Congress increases expenditures in an effort to stimulate economic activity.

---

Definitions:

Aboriginal Peoples

Indigenous individuals and communities who are native to a land or country, especially those recognized as such in countries like Canada, Australia, and others.

Primary Sector

The sector of an economy involving the extraction and harvesting of natural resources directly from the earth, such as agriculture, mining, and forestry.

Tertiary Sector

This term refers to the sector of an economy focused on services rather than the production of goods, including areas such as retail, entertainment, and financial services.

Secondary Sector

The part of the economy that includes industries involved in the processing, transformation, fabrication, or construction of materials and products from raw materials.