Table 26-2 -Refer to Table 26-2. Consider the Hypothetical Information in the Hypothetical

question 177

Multiple Choice

Table 26-2

-Refer to Table 26-2. Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy. If the Fed wants to keep real GDP at its potential level in 2015, it should

• A) buy Treasury securities.
• B) sell Treasury securities.
• C) increase the required reserve ratio.
• D) increase income taxes.

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Definitions:

IT Architecture

The structural design of information technology systems and services, including the physical and software components, their interrelationships, and the principles governing their design and evolution.

Applications Software

Programs designed to carry out specific tasks for the user, such as word processors, web browsers, and email clients.

IS Planning Process

The strategic process within organizations aimed at identifying information system needs to support business objectives and operations.

Strategic Plan

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.