When the Economy Is in a Recession,the Fed Can ________

question 183

Multiple Choice

When the economy is in a recession,the Fed can ________ the federal funds rate,which ________ aggregate demand and ________ real GDP.

• A)lower;increases;decreases
• B)raise;decreases;increases
• C)lower;increases;increases
• D)raise;increases;decreases
• E)lower;decreases;decreases

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Definitions:

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating bodily functions and activities.

Erotic Movie

A genre of film that focuses on sexual themes and content, typically intended to arouse the audience.

Nonalcoholic Beverage

A drink that contains no alcohol, such as soda, water, or juice.

Nicotine

A stimulating and highly addictive psychoactive drug in tobacco.