When Current Real Output Exceeds Potential Real Output,the Fed Will

question 167

Multiple Choice

When current real output exceeds potential real output,the Fed will _____ interest rates in an effort to fight _____.

• A) increase;a recession
• B) decrease;a recession
• C) decrease;inflation
• D) increase;inflation

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Definitions:

Venn Diagram

A diagram that uses circles to represent the relationships among various sets or groups of objects.

Syllogism Validity

A measure of whether a deductive argument is logically sound, where the conclusion necessarily follows from the premises.

Venn Diagram

A visual diagram that illustrates the logical relationships among several distinct groups within a limited set.

Syllogism Validity

A measure of whether a syllogism (a form of deductive reasoning consisting of a major premise, a minor premise, and a conclusion) logically follows from its premises.