The Major Problem Facing the Economy Is High Unemployment and Weak

question 215

Multiple Choice

The major problem facing the economy is high unemployment and weak economic growth. The inflation rate is low and stable. Therefore, the Federal Reserve decides to pursue a policy to increase the rate of economic growth. Which policy changes by the Fed
Would reinforce each other to achieve that objective?

• A) selling government securities, doing reverse repos, and raising the discount rate
• B) selling government securities, doing repos, and lowering the discount rate
• C) buying government securities, doing repos, and lowering the discount rate
• D) buying government securities, doing reverse repos, and raising the reserve ratio

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Definitions:

Social Category

A grouping of people who share a common characteristic or trait, without necessarily interacting or identifying with each other.

Perceived Biological Differences

The subjective interpretation or belief in the existence of distinct biological distinctions between various groups, such as between genders or races.

Race

A socially defined category based on real or perceived biological differences between groups of people.

Institutional Discrimination

Discrimination carried out systematically by institutions (political, economic, educational, and others) that affects all members of a group who come into contact with it.