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.

---

Definitions:

Organisational Level

Organisational level pertains to the hierarchy within a company or institution, relating to how decision-making is structured and how tasks are allocated.

Customer Relationship Management

A strategic approach to managing a company's interactions with current and potential customers, using data analysis to improve business relationships.

Information Technology

The use of computers, software, and telecommunications to store, retrieve, transmit, and manipulate data, often in the context of business or enterprise.

Competitive Advantage

The unique attributes or conditions that allow a company to outperform its competitors, providing greater value to its customers.