Multiple Choice
Suppose that businesses and consumers become much more optimistic about the future of the economy.To stabilize output,the Federal Reserve could
A) buy bonds to raise interest rates.
B) buy bonds to lower interest rates.
C) sell bonds to raise interest rates.
D) sell bonds to lower interest rates.
Correct Answer:

Verified
Correct Answer:
Verified
Q12: Suppose there was a large increase in
Q50: Which U.S.president,when asked why he had proposed
Q51: Critics of stabilization policy argue that<br>A)"animal spirits"
Q52: In the early 1960s,the Kennedy administration made
Q54: Which of the following reduces the interest
Q56: In 1961,President John F.Kennedy,acting upon advice from
Q57: During recessions,automatic stabilizers tend to make the
Q58: Which of the following policies would Keynes's
Q59: A 2009 article in The Economist noted
Q60: A policy that results in slow and