When Fed Policy Is Being Used to Offset an Inflationary

question 122

Multiple Choice

When Fed policy is being used to offset an inflationary gap, which of the following variables increases as a result?​

• A)​Aggregate demand.
• B)​Investment.
• C)​Net Exports.
• D)​Interest rates.

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Definitions:

Fair Value Allocation

The process of assigning a fair market value to all assets and liabilities of a company, often conducted during the acquisition process.

Par Value

Par value is the nominal or face value of a bond, stock, or other financial instrument, as stated by the issuer.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to a share of the company’s profits and a right to vote on company matters.

Consolidation Worksheet

A tool used in preparing consolidated financial statements that combines the assets, liabilities, and equity of a parent company and its subsidiaries.