The correct answer is C) real GDP rises and the unemployment rate decreases.
The complete question is the following:
If the Federal Reserve decreases the rate on required and excess reserves, then it means that:
A) real GDP decreases and deflation occurs.
B) real GDP rises and the unemployment rate increases.
C) real GDP rises and the unemployment rate decreases.
D) real GDP decreases and the unemployment rate decreases.
So if the Federal Reserve decreases the rate on required and excess reserves, then it means that real GDP rises and the unemployment rate decreases.
The Federal Reserve -commonly known as the Fed- plays the role of the Central bank in the United States. The Fed regulates the money supply to maintain a healthy financial system. It has to make difficult decisions in difficult times in order to avoid a crisis and regulates the economy of the United States. The Fed procures to balance inflation with economic growth.
The estimated cot to America for traffic crashes caused by underage drinkers is more than 10 billion dollars per year.
This cost came from various public property that has to be repaired and the hospitalization by the accident caused by the underage drinkers.
Answer:
Government failure occurs when a ruler forces people to do things that the people are otherwise unwilling to do and the result is inefficient and ineffective. Causes of government failure include Economic Calculation Problem: The more government is involved, the more actual costs and actual demand is hidden.
Explanation:
