In an Effort to Address the Troubled Economy

question 9

Multiple Choice

In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal Reserve is expected to cut interest rates, quite possibly its last reduction in this downturn." Rates have not been this low "... since 2003, when the economy was growing at a snail's pace."
Www) csmonitor.com, 10/28/2008
The Fed's rates cuts will initially impact ________ and eventually ________.

• A) bank reserves; government spending
• B) the money supply; bank reserves
• C) bank reserves; real GDP
• D) investment; the real interest rate

---

Definitions:

Thalamus

A brain structure acting as a relay station, directing sensory and motor signals to the cerebral cortex, except for the sense of smell.

Cerebral Cortex

The outermost layer of the brain, involved in high-level functions such as thinking, perception, and decision-making.

Amygdala

A pair of almond-shaped masses of gray matter inside each cerebral hemisphere, involved with the experiencing of emotions, such as fear and pleasure.

Complex Emotional

Emotional states that involve a mixture of emotions or feelings that are more nuanced and less straightforward than basic emotions.