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Subject - Economics:

Macroeconomics

MCQ - 75-4085

Question:

Suppose today’s headline is that private investment has decreased as a result of an action by the Federal Reserve. Which of the following choices is the most likely cause?

  1. Selling Treasury securities to commercial banks
  2. Lowering of the discount rate
  3. Decreasing the reserve ratio
  4. Lowering of the discount rate
  5. A stronger stock market has increased investor optimism

Correct Answer: A

Explanation:

Lower levels of investment are the result of higher interest rates so look for the choice that describes a decrease in the money supply.

Record Performance

269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Suppose today’s headline is that private investment has decreased as a result of an action by the Federal Reserve. Which of the following choices is .... most likely cause? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 75-4085.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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