Which the fed may decide to

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Problem 1: If businesses are producing at capacity, and the nation is experiencing almost full employment (a very low rate of unemployment - less than 2%), the Fed may decide to:

Option 1: Lower interest rates.

Option 2: Raise taxes.

Option 3: Lower taxes.

Option 4: Increase interest rates.

Problem 2: In the U.S., the __________ has the role of managing the money supply and interest rates.

Option 1: United States Treasury

Option 2: Federal Reserve Bank

Option 3: State Department

Option 4: Federal Deposit Insurance Corporation

Reference no: EM132948863

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