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14. If the Federal Reserve purchases $130 million worth of US treasury bills from the public, the money supply will 15. The unemployment rate;

a. Shows the percentage of the population that is considered unemployed. b. Is the amount of the labor force that is not working c. Is the amount of people in the population that are not working d. Shows the percentage of the labor force that is considered unemployed.

16. When the Federal Reserve increases the discount rate as a part of a contractionary monetary policy, there is; a. A decrease in the money supply and an increase in the interest rate b. A decrease in the money supply and a decrease in the interest rate c. An increase in the money supply and a decrease in the interest rate d. An increase in the money supply and an increase in the interest rate

17. Suppose the economy is in long run equilibrium, the Fed decides to increase the discount rate, in the short run, this contractionary monetary policy will cause;

a. A shift from SRAS 1 to SRAS2, and a movement to point A, with a higher price level and same output

Econ 545 all weeks discussion (devry)  

For more course tutorials visit www.econ545.com DEVRY ECON 545 Week 1 DQ 1 Supply and Demand DEVRY ECON 545 Week 1 DQ 2 Elasticity and the...

Econ 545 all weeks discussion (devry)  

For more course tutorials visit www.econ545.com DEVRY ECON 545 Week 1 DQ 1 Supply and Demand DEVRY ECON 545 Week 1 DQ 2 Elasticity and the...

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