When the Fed ________ the federal funds rate, other short-term ...

[Jramos095]

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

[TDubDCFL]

Answer to Question 1

C

Answer to Question 2

C

[Jramos095]

Excellent

[sultansheikh]

YES! Correct, THANKS for helping me on my review