Recall the Application. In response to the financial crisis, the ...

[sam.t96]

Recall the Application. In response to the financial crisis, the Fed implemented a new policy in which it began to pay interest on deposits held at the Fed.
 
  This move would ________ deposits held at the Fed and ________ the Fed's ability to make loans.
  A) increase; decrease B) decrease; decrease C) increase; increase D) decrease; increase

Question 2

According to Okun's Law, if real GDP grows by 4 over a year, unemployment is likely to ________.
 
  A) increase by 0.5 B) decrease by 0.5 C) decrease by 1 D) increase by 1

[voltaire123]

Answer to Question 1

C

Answer to Question 2

B