When the Fed Uses Its Policy Tools to Smooth Out

question 12

Multiple Choice

When the Fed uses its policy tools to smooth out the business cycle, the policy is referred to as a(n)

• A)stabilization policy.
• B)Pareto-efficient policy.
• C)contractionary policy.
• D)expansionary policy.

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Definitions:

Chesapeake Colonies

The British colonies established in the Chesapeake Bay region, primarily Virginia and Maryland, known for their tobacco-based plantation economy.

Institution of Slavery

A social and economic system where individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services.

Religion

A set of beliefs concerning the cause, nature, and purpose of the universe, especially when considered as the creation of a superhuman agency or agencies, usually involving devotional and ritual observances.

Chesapeake Colonists

Early settlers of the British colonies in the Chesapeake Bay area, primarily Virginia and Maryland, during the 17th century.