According to the Political Business Cycle Theory, If the Fed

question 17

Multiple Choice

According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might

• A)lower the discount rate and sell bonds.
• B)lower the discount rate and buy bonds.
• C)raise the discount rate and sell bonds.
• D)raise the discount rate and buy bonds.

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Definitions:

Free Market Ideas

Economic theories and principles that advocate for minimal government intervention, allowing the forces of supply and demand to dictate market outcomes.

Majority

More than half of a particular group or amount, often referring to the requirement for decision-making in voting contexts.

Represented

To have one’s interests or viewpoints presented or advocated for, especially in contexts like negotiations or decision-making bodies.

Majority Unions

Organizations that represent the interests of a majority of workers in a particular sector or company, typically engaging in collective bargaining.