Under a k-percent rule, if the economy goes into expansion, the Fed would
A) increase the quantity of money.
B) raise the federal funds rate.
C) lower tax rates to keep revenue constant.
D) lower the federal funds rate.
E) None of the above answers is correct.
Question 2
The town of Marble Falls has 10 workers, of which 8 were employed and 2 were actively seeking work. After many months of seeking work, both of the unemployed workers became discouraged and stopped looking for work six weeks ago.
The unemployment rate in Marble Falls is now A) 0.
B) 11.1.
C) 20.
D) 25.
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