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:

Stimulant

A type of drug that increases activity in the central nervous system, causing increased alertness, attention, and energy.

Barbiturates

A group of drugs that act as central nervous system depressants, often used medicinally as sedatives, hypnotics, and anticonvulsants.

Drug Interaction

A drug interaction involves changes in the effects or actions of one drug caused by the presence of another drug, food, or substance.

Physical Dependence

A physiological state of adaptation to a substance, marked by the emergence of withdrawal symptoms when the substance is reduced or stopped.