If the Unemployment Rate Is 4

question 153

Multiple Choice

If the unemployment rate is 4.5% and the inflation rate is 6%,the Fed will most likely:

• A) lower the discount rate.
• B) buy bonds.
• C) lower the reserve requirement.
• D) sell bonds.

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell, the fundamental unit of the nervous system encoding and transferring information.

Myelin Sheath

A protective covering that surrounds axons of many neurons, facilitating the faster transmission of electrical impulses along the nerve cells.

Dendrites

Extensions of neurons that receive signals from other neurons and transmit them toward the cell body.

Axon

A long, slender projection of a nerve cell, or neuron, that conducts electrical impulses away from the neuron's cell body to transmit information to different neurons, muscles, and glands.