Open Market Operations by the Fed Cause

question 269

Multiple Choice

Open market operations by the Fed cause

• A) changes in the difference between the discount rate. and the federal funds rate.
• B) aggregate supply to change.
• C) the prices of bonds to change.
• D) changes in the required reserve ratio.

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Definitions:

Labor-Force Participation Rate

The portion of the working-age population that is engaged in or seeking employment, including both employed and unemployed individuals.

Unemployment Rate

The percentage of people in the labor pool who are without employment and are actively hunting for jobs.

Labor-Force Participation Rate

The percentage of the working-age population that is in the labor force, including both employed and unemployed individuals.

Employed

The state of having paid work or being engaged in an activity or enterprise as a means of earning an income.