QUESTION 1 Economists warn that the nation is slipping into a…

QUESTION 1

Economists warn that the nation is slipping into a recession. Which fiscal policies will the federal government most likely take to help the economy grow? (4 points)
A Raise taxes and increase spending
B Raise taxes and decrease spending
C Lower taxes and increase spending
D Lower taxes and decrease spending
QUESTION 2
If inflation begins to rise rapidly, which step is the Federal Reserve likely to take? (4 points)
A Increase the reserve requirement.
B Buy government securities.
C Decrease the discount rate.
D Decrease the federal funds rate.

QUESTION 3
If a series of events results in a decrease in investments in U.S. businesses, what is the result on the U.S. economy? (4 points)
A Trough
B Peak
C Expansion
D Contraction