When the Fed Conducts Open Market Operations,the Impact of the Buying

question 20

Multiple Choice

When the Fed conducts open market operations,the impact of the buying or selling of bonds will include changes in

• A) the money supply.
• B) interest rates.
• C) the expected rate of inflation.
• D) a and c
• E) a,b and c

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Definitions:

Discouraged Workers

Individuals not actively seeking employment due to believing there are no jobs available for them or there are no jobs for which they would qualify.

Labor-Force Participation Rates

The share of the labor force within the working-age bracket that is either working or actively searching for work.

Labor-Force Participation Rate

The proportion of the working-age population that is either employed or actively looking for employment.

Unemployment Rate

The percentage of the labor population that is job-free but in active pursuit of employment.