The Fed purchases 100 million of U.S. government securities from First National Bank. The balance sheet for First National Bank shows ________ in its total assets and ________ in its total liabilities.
A) no change; no change
B) a 100 million increase; a 100 million increase
C) a 100 million decrease; a 100 million increase
D) a 100 million increase; no change
E) a 100 million increase; a 100 million decrease
Question 2
Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?
What will be an ideal response?