Answer:
D. harms the society by interfering with the economy's natural process.
Explanation:
In order to get out of recession, the fed should reduce the tax rates, which would in return lead to higher disposable income of the consumers, and then there will be an increase in the demand.
On the other hand the sale of bonds would even further increase the recession, as there will be more cash crunch in the economy. A decrease in reserve ratio will be a long time taking solution, so it would not provide an immediate solution.
MCQ
But, if the fed interferes with the short run equilibrium in the hope of giving short run benefits, it will hamper the economy's natural process to attain a new equilibrium as discussed in the paragraph above. Hence, option D is the correct answer
Option A and C are incorrect, because, employment is not much affected with lowering of income tax. On, the other hand, inflation levels rise, when there is a cut in income tax, as it gives more currency in the economy, hence even C is incorrect.
It is called centrally-planned economy or command economy
the answer is b:) because high interest rates mean increased cost for all the others since it is not a fixed cost for them
Answer:
The correct answer is
d. lower interest rates and greater investment.
good luck
We can actually deduce here that the unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics as: D. Secondary effects.
<h3>What is unintended consequence?</h3>
Unintended consequence, as seen in social sciences are known to be the result or outcome that is gotten from a purposeful action which were not seen coming.
The options that complete the question are:
a. scarcity constraints.
b. marginal effects.
c. opportunity costs.
d. secondary effects
We can actually deduce here that such unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics are known to be secondary effects.
Learn more about unintended consequence on brainly.com/question/17228614
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