According to Bernanke's Policy Guide,a 1/4 Point Decrease in Long-Term

question 64

Multiple Choice

According to Bernanke's policy guide,a 1/4 point decrease in long-term interest rates results in a

• A)$10 billion stimulus for the economy.
• B)$50 billion stimulus for the economy.
• C)$10 billion decrease for the economy.
• D)$50 billion decrease for the economy.

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Definitions:

Hypothetical Propositions

Statements or propositions that are based on assumptions or hypothesis rather than on concrete evidence.

Formal Operations

A stage in Jean Piaget's theory of cognitive development where individuals gain the ability to think abstractly, logically, and systematically, typically beginning in adolescence.

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The possession of the means or skill to do something or perform a task effectively.

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