If There Is a Political Business Cycle and the Federal

question 36

Multiple Choice

If there is a political business cycle and the Federal Reserve supports the incumbent,then we should expect that prior to elections the Fed would

• A)raise interest rates to shift aggregate demand left.
• B)raise interest rates to shift aggregate demand right.
• C)reduce interest rates to shift aggregate demand left.
• D)reduce interest rates to shift aggregate demand right.

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Definitions:

Problem-Solving Skills

The ability to find solutions to obstacles or issues through effective methods and critical thinking.

Job Descriptions

Formal documents that outline the duties, responsibilities, required qualifications, and reporting relationships of a particular job.

Productivity

The efficiency of production of goods or services expressed by some measure, typically output per unit of input.

Plant Layout

The arrangement of machinery, equipment, and storage areas within a factory or workshop designed to optimize workflow and productivity.