If real GDP exceeds potential GDP, to move the economy to ...

[mynx]

If real GDP exceeds potential GDP, to move the economy to potential GDP the Fed
 
  A) raises the federal funds rate to increase potential GDP but not real GDP.
  B) lowers the federal funds rate to decrease real GDP but not potential GDP.
  C) raises the federal funds rate to decrease real GDP but not potential GDP.
  D) lowers the federal funds rate to increase potential GDP but not real GDP.
  E) raises the federal funds rate to decrease both real GDP and potential GDP.

Question 2

Refer to the table above. If Tom has a taxable income of 62,000, he faces a marginal tax rate of ________.
 
  A) 10
  B) 15
  C) 20
  D) 30

[kaillie]

Answer to Question 1

C

Answer to Question 2

C

[mynx]

Thank you

[kaillie]

Happy to help you