If the Fed Is Concerned About a Possible Recession,it ________

question 113

Multiple Choice

If the Fed is concerned about a possible recession,it ________ the federal funds rate,which ________ the quantity of money and ________ the amount of bank loans.

• A)raises;decreases;decreases
• B)lowers;decreases;decreases
• C)lowers;increases;decreases
• D)raises;increases;increases
• E)lowers;increases;increases

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Definitions:

Stock Market

A public market for the trading of company stock and derivatives at an agreed price; it is a key component of the economy.

Hyperbolic Discounting

A behavioral economics theory that describes how people disproportionately value present over future benefits, leading to preferences that decline hyperbolically over time.

Long Term Future

Refers to an extended period ahead, often beyond several years, during which strategic planning or forecasting is considered.

Near Term Future

A period of time that is immediately ahead, often used to describe the timeframe in which upcoming events or changes are expected to occur.