Twenty-four months after a 1 percentage point increase in the short-term (Treasury bill)interest rate,real GDP have fallen by about ________ in 1961-75,by ________ during 1976-1990,and by ________ during 1991-2007 period.88-2004.
A)2%,1%,3%
B)0.1%,2%,1.8%
C)1.8%,0.9%,0.2%
D)0.2%,0.1%,0.9%

Question

Quizplus · Accepted Answer

According to the data provided by the question, the short-term interest rate increased by 1 percentage point, and real GDP fell by a certain percentage in different time periods. In 1961-75, real GDP fell by about 1.8%. In 1976-1990, real GDP fell by about 0.9%. In 1991-2007, real GDP fell by about 0.2%. The option that matches these percentages is C: 1.8%, 0.9%, 0.2%. Therefore, the answer is C.

Twenty-Four Months After a 1 Percentage Point Increase in the Short-Term