Answer:
The answer is option (B) Foot-in-the-door phenomenon
Explanation:
Foot-in-the-door phenomenon is a technique of getting someone to grant or comply with a large request by initially making small or modest requests.
The technique is based on the logic that if a respondent (the person being asked) can grant an initial small or modest request, then the respondent would be most likely to later grant a larger request that he/she (the respondent) would not have granted if asked outright (without being approached with small requests first).
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.
