Which One of the Following Actions Is the Federal Reserve

question 35

Multiple Choice

Which one of the following actions is the Federal Reserve most likely to take if it is concerned about a slowing economy?

• A)lower the tax rate
• B)lower the discount rate
• C)increase the call rate
• D)increase the tax rate
• E)increase the discount rate

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Definitions:

Pollution Laws

Legislation and regulations designed to control or reduce the release of harmful substances into the environment.

Competitive Industry

An industry characterized by many firms, free entry and exit, and products that are similar but differentiated.

Cost Advantages

Economic benefits enjoyed by a company that can produce goods or services at a lower cost compared to its competitors, often due to greater efficiency or economies of scale.

Differentiated Products

Goods or services that are distinct in quality, features, design, or brand from those offered by competitors in the same market.