Multiple Choice
If real GDP exceeds potential GDP,to move the economy to potential GDP the Fed
A) raises the federal funds rate to increase potential GDP but not real GDP.
B) lowers the federal funds rate to decrease real GDP but not potential GDP.
C) raises the federal funds rate to decrease real GDP but not potential GDP.
D) lowers the federal funds rate to increase potential GDP but not real GDP.
E) raises the federal funds rate to decrease both real GDP and potential GDP.
Correct Answer:

Verified
Correct Answer:
Verified
Q17: Which of the following is an example
Q18: Discretionary fiscal policy is defined as fiscal
Q19: When tax revenues equal government outlays,the situation
Q20: The Fed increases the quantity of money
Q21: If the federal government has a budget
Q23: When the Fed raises the federal funds
Q24: The annual statement of the outlays,tax revenues,and
Q25: The use of discretionary fiscal policy is
Q26: The FOMC is concerned about inflation and
Q27: If the Fed is concerned about inflation,its