If a Recessionary GDP Gap Exists,which of the Following Sets

question 143

Multiple Choice

If a recessionary GDP gap exists,which of the following sets of policies should the Federal Reserve Board pursue?

• A)Sell government securities,lower the discount rate,and lower the required reserve ratio.
• B)Sell government securities,lower the discount rate,and raise the required reserve ratio.
• C)Buy government securities,raise the discount rate,and lower the required reserve ratio.
• D)Buy government securities,lower the discount rate,and lower the required reserve ratio.
• E)Buy government securities,lower the discount rate,and raise the required reserve ratio.

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Definitions:

Battery Load Test

A diagnostic procedure to evaluate a vehicle's battery's ability to hold a charge under simulated start-up loads.

Voltage Dropped

The reduction in electrical potential across a component or conductor as current passes through, indicative of resistance or load.

Control Circuit

An electrical circuit that controls the operation of a device, using signals or feedback to regulate the device's function.

Voltage Drop

The measurement of voltage lost through wiring, components, and connections due to electrical resistance.