Suppose the Fed Pursues a Policy That Leads to Higher

question 71

Multiple Choice

Suppose the Fed pursues a policy that leads to higher interest rates in the United States.How will this policy affect real GDP in the short run if the United States is an open economy? This policy

• A)reduces investment spending,consumption spending and net exports,all of which reduce GDP.
• B)reduces investment spending and consumption spending,both of which reduce GDP.Net exports rise which increases GDP.
• C)reduces investment spending and consumption spending,both of which reduce GDP.Net exports fall which increases GDP.
• D)increases investment spending,consumption spending,and net exports,all of which increase GDP.

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Definitions:

Verbal Cues

Elements of communication expressed through spoken words that convey messages or suggestions, often used to signal or emphasize ideas.

Nonverbal Cues

Forms of communication without words, such as gestures, facial expressions, and body language, which convey messages or emotions.

Consent

The voluntary agreement to or approval of what is planned or done by another person.

Sexual Harassment

Unwanted or inappropriate sexual remarks or physical advances, typically in a workplace or other professional environment.