During the Course of a Bad Recession the Fed Would

question 236

Multiple Choice

During the course of a bad recession the Fed would probably be doing each of the following,except

• A)selling securities on the open market.
• B)lowering interest rates.
• C)lowering reserve requirements.
• D)lowering the discount rate.

---

Definitions:

Autonomous Consumption

The level of consumption that would still occur even if a consumer had no income, driven by basic needs and commitments.

Autonomous Consumption

The level of consumption expenditure that occurs when income is zero, indicating the basic level of consumption that is necessary for survival.

Disposable Income

Monetary allocations for households after income taxes, intended for spending and saving.

Consumption

The total value of goods and services consumed by households and government within a country.