If the Economy Were in a Recession,which of the Following

question 23

Multiple Choice

If the economy were in a recession,which of the following policies would a person who favors an active approach to policy be most likely to support?

• A)The economy should be left to cure itself without government intervention.
• B)The Fed should sell U.S.government securities in its open-market operations.
• C)The Fed should raise the discount rate.
• D)Government lower tax rates.
• E)The Fed should raise the required reserve ratio.

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Definitions:

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, influencing heart rate and blood pressure.

Synaptic Cleft

The synaptic cleft is the gap between two nerve cells at a synapse, across which neurotransmitters are sent to transmit signals from one neuron to another.

Neurotransmitter

Chemical compounds responsible for transmitting signals from one neuron to another across a synaptic gap within the nervous system.

Action Potentials

Rapid and temporary electrical impulses in neurons or muscle cells that allow communication over long distances within the body.