If the Probability of Losing Your Job Remains ________,A Recession

question 20

Multiple Choice

If the probability of losing your job remains ________,a recession would be a good time to purchase a home because the Fed usually ________ interest rates during this time.

• A)low; lowers
• B)low; raises
• C)high; lowers
• D)high; raises
• E)low; does not change

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Definitions:

Wage Rate

The fixed amount of compensation or payment received by an employee from an employer in exchange for work or services performed.

Labor

Refers to human effort, whether physical or mental, used in the production of goods and services.

Derived Demand

The demand for a good or service that results from the demand for a different, or intermediate, good or service.

Resources

Assets, materials, and human capabilities used to produce goods and services in an economy.