The Federal Reserve Bank can ____________ and the government can ___________ to stimulate aggregate demand in the economy.
A. lower interest rates; increase spending
B. increase interest rates; decrease spending
C. increase interest rates; increase spending
D. lower interest rates; decrease spending
A. lower interest rates; increase spending
You might also like to view...
In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent
Indicate whether the statement is true or false
When the percentage change in quantity supplied is greater than the percentage change in price, supply is said to be elastic
Indicate whether the statement is true or false
Deadweight loss
a. measures monopoly inefficiency. b. exceeds monopoly profits. c. equals monopoly profits. d. equals monopoly revenues minus profits.
The golden age of prosperity for productivity in the United States was from World War II to 1973, when productivity rose at an average rate of _____ per year.
A. 1.4% B. 5.0% C. 2.8% D. 2.1%