People react to an excess supply of money by:
a. selling bonds, thus driving up the interest rate.
b. selling bonds, thus driving down the interest rate.
c. buying bonds, thus driving up the interest rate.
d. buying bonds, thus driving down the interest rate.
Question 2
Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:
a. a member of the civilian labor force who is employed.
b. a member of the civilian labor force who is unemployed.
c. a member of the civilian labor force who is underemployed.
d. a discouraged worker who is not a member of the labor force.
e. not a member of the labor force.
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