Which of the Following Describes the Chain of Events the Fed

question 34

Multiple Choice

Which of the following describes the chain of events the Fed uses to fight recession?

• A) Raise the federal funds rate target, sell government securities, decrease reserves and loans, increase aggregate demand.
• B) Lower the federal funds rate target, buy government securities, decrease reserves and loans, decrease aggregate demand.
• C) Raise the federal funds rate target, buy government securities, increase reserves and loans, decrease aggregate demand.
• D) Lower the federal funds rate target, buy government securities, increase reserves and loans, increase aggregate demand.

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Definitions:

Unemployment Rate

The percentage of those not working, but officially defined as looking for work.

Conflict Theory

A theoretical framework that views social life as a competition, arguing that social order is maintained by domination and power.

Functionalism

A theoretical framework in sociology that emphasizes the interconnections of society's components and their roles in maintaining social stability.

Symbolic Interactionism

An approach in sociology focusing on the significance of symbols and language as essential aspects of every human interaction.