Other Things Equal, the Level of Real GDP Will Tend

question 118

Multiple Choice

Other things equal, the level of real GDP will tend to increase in the short run:​

• A)​if reserve requirements are decreased.
• B)​if the Fed decreases the interest rate it pays on bank reserves
• C)​if there is an open market purchase by the Fed.
• D)​all of the above

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Definitions:

Dormant

In a state of temporary inactivity or rest, with the potential to awaken or activate.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, impacting an organism's development and functioning.

Environmental Events

Occurrences or incidents in the natural world that can influence behavior and mental processes.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and sadness, considered one of the five major traits in the study of personality.