The Federal Reserve has complete control over the A. Inflation Rate B. Discount

Question

The Federal Reserve has complete control over the

A. Inflation Rate

B. Discount Rate

C. All of the above

D. Fed Funds

Rate Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take a deliberate action is

A. All of the above

B. Budget Surplus

C. Automatic Stabilizers

D. Budget Deficit

When the government increases its purchases by $10 B, the AD will rise by more than $10 B because of

A. tax increase

B. all of the above

C. crowding out

D. the multiplier

Explanation / Answer

1. C. All of the above

2. C. Automatic Stabilizers

3. D. the multiplier

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