The Fed Can Decrease the Money Supply by Conducting Open-Market

question 8

Multiple Choice

The Fed can decrease the money supply by conducting open-market

• A)sales or by raising the discount rate.
• B)sales or by lowering the discount rate.
• C)purchases or by raising the discount rate.
• D)purchases or by lowering the discount rate.

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Definitions:

Adults Unemployed

Individuals over the working age who are without jobs and actively seeking employment.

Adults Not in the Labor Force

Individuals aged 16 and older who are neither employed nor actively seeking employment.

Total Adult Population

The entire number of individuals within a specified area or country who are legally considered adults, often used in demographic analyses and economic models.

Not in the Labor Force

Individuals who are neither employed nor actively seeking employment and, therefore, not counted in the labor force.