Multiple Choice
If businesses and consumers become pessimistic,the Federal Reserve can attempt to reduce the impact on the price level and real GDP by
A) increasing the money supply,which raises interest rates.
B) increasing the money supply,which lowers interest rates.
C) decreasing the money supply,which raises interest rates.
D) decreasing the money supply,which lowers interest rates.
Correct Answer:

Verified
Correct Answer:
Verified
Q14: Keynes used the term "animal spirits" to
Q15: Most recessions and depressions<br>A)are accurately forecasted.<br>B)usually occur
Q16: The Employment Act of 1946 states that<br>A)the
Q17: Figure 34-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 34-9
Q19: Which of the following policies would be
Q20: A fiscal stimulus was initiated by President
Q22: The Kennedy tax cut of 1964 was<br>A)successful
Q30: Suppose an increase in interest rates causes
Q73: Other things the same, automatic stabilizers tend
Q145: An example of an automatic stabilizer is<br>A)unemployment