When the Fed ________ the federal funds rate, other short-term interest rates ________ and the exchange rate ________.
A) lowers; rise; rises
B) raises; fall; rises
C) raises; rise; rises
D) raises; rise; falls
E) lowers; rise; falls
Question 2
Harold was laid off from his job as a circus clown because an economic recession caused demand for tickets to the circus to dramatically decline. Harold would best be described as ________ unemployed.
A) frictionally
B) structurally
C) cyclically
D) naturally