-The Economy Is at the Equilibrium Shown at Point a in the Above

question 111

Multiple Choice

-The economy is at the equilibrium shown at point a in the above figure.If the Fed

• A) buys government securities, the economy moves to an equilibrium at point c.
• B) buys government securities, the economy moves to an equilibrium at point b.
• C) sells government securities, the economy moves to an equilibrium at point c.
• D) sells government securities, the economy moves to an equilibrium at point b.
• E) None of the above are correct because the economy will remain at point a if the Fed buys or if the Fed sells government securities.

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Definitions:

Family Wage System

An economic concept where the wage earned by one household member (traditionally the male breadwinner) is sufficient to support a family.

Nuclear Family

A family unit consisting of two parents (a mother and a father) and their biological or adopted children, living together as a single household.

Functionalist View

A theoretical perspective in sociology that sees society as a complex system whose parts work together to promote solidarity and stability.

Social Change

Transformations in societal norms, values, structures, and behaviors over time, often resulting from collective actions, technological advancements, or environmental factors.