Refer to the Following Figure When Answering the Following Questions

question 67

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 12.2: IS-MP Curve
-Consider Figure 12.2. If the stock market drops sharply, there is a loss in consumer and investor confidence and the economy moves from point ________. To prevent a ________, the Fed ________, and the economy moves from point ________.

• A) a to d; recession; lowers interest rates; d to b
• B) d to c; recession; lowers interest rates; c to b
• C) c to b; bubble; raises interest rates; b to c
• D) a to d; recession; lowers interest rates; d to c
• E) Not enough information is given.

---

Definitions:

Control

The process of monitoring and regulating variable factors to ensure the desired standards or outcomes are achieved.

Collaborative Filtering

A technique used by recommendation systems to suggest products or content by analyzing patterns from user behavior.

Image Recognition

A technology that identifies objects, places, people, writings, and actions in images or video through artificial intelligence and machine learning.

Artificial Intelligence

The simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.