Clicker Class 27

Clicker Class 27 - 2 Between July 2004 and June 2006 the...

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Econ 101 Class 27 Questions 1. Which of the following best explains why lowering the interest rate will raise the equilibrium level of output? A lower interest rate will ________ A. Raise the level of potential output. B. Cause consumers to increase household saving. C. Cause firms to increase capital building. ** D. Raise the level of imports.
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Unformatted text preview: 2. Between July, 2004 and June, 2006, the Fed decided to act in a way that would reduce the risk of inflation. What did it do during this period? The Fed _______ government bonds and _______ the Federal Funds Rate. A. Bought, Increased B. Sold, Increased ** C. Bought, Decreased D. Sold, Decreased...
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