Which of the Following Would Move the Economy Down and to the Right

question 131

Multiple Choice

Which of the following would move the economy down and to the right along a short run Phillips Curve?​

• A)​Increases in the required reserve ratio by the Fed.
• B)​Increases in taxes by the federal government.
• C)​Increases in the interest rate that the Fed pays on bank reserves.
• D)​All of the above.

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Definitions:

Interest Payments

Payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the principal amount.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.

Treasury Shares

Shares that were once outstanding and have been bought back by the company, which may be held in the company's treasury.

Short-term Investments

Investments that are expected to be converted into cash within one year or during the next operating cycle, whichever is longer.