An Open Market ________ by the Fed Decreases Interest Rates

question 144

Multiple Choice

An open market ________ by the Fed decreases interest rates and ________ investment.

• A) purchase; increases
• B) purchase; decreases
• C) sale; increases
• D) sale; decreases

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Definitions:

Production Possibility Frontier

Describes the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Ppf

Production Possibility Frontier, a curve depicting all maximum output possibilities for two or more goods given a set of inputs.

Capital Goods

Long-term assets used in the production of other goods and services, such as machinery, buildings, and equipment.