Purchasing Securities in Open-Market Operations by the Federal Reserve Has

question 34

True/False

Purchasing securities in open-market operations by the Federal Reserve has the same effect as increasing reserve requirements.

---

Definitions:

Labor

The human effort, either physical or mental, that is used in the production of goods and services.

MRP

Marginal Revenue Product, the additional revenue generated by employing one more unit of a resource, such as labor or capital.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery, buildings, and land.

Labor

The body of persons engaged in physical or mental work, especially to produce goods or provide services for wages.