【单选题】Suppose the economy is in a recession and the Fed lowers the federal funds rate. Then
A.
real GDP and the price level will both decrease.
B.
real GDP will increase and the price level will decrease.
C.
real GDP will decrease and the price level will increase.
D.
real GDP and the price level will both increase.
【单选题】When the Fed lowers the federal funds rate, aggregate demand
D.
could increase, decrease or stay the same.
【单选题】If the Fed lowers the federal funds rate, then
A.
investment and consumption expenditure decrease.
B.
the price of the dollar rises on the foreign exchange market and so net exports decrease.
C.
a multiplier process that affects aggregate demand occurs.
D.
All of the above answers are correct.
【单选题】When the Fed lowers the federal funds rate,
A.
consumption expenditures decrease.
B.
the dollar increases in value on foreign exchange markets.
D.
investment expenditures increase.
【单选题】If the Fed lowers the federal funds rate, the Fed's goal is to
A.
increase aggregate demand.
B.
decrease aggregate supply.
C.
increase aggregate supply.
D.
decrease the inflation rate as firms produce more goods and services.