Author Question: Which of the following policies would be most likely to reduce the rate of inflation? a. sale of ... (Read 34 times)

asmith134 · **on:** Jun 30, 2018

Which of the following policies would be most likely to reduce the rate of inflation?
a. sale of government bonds by the Federal Reserve
b. a reduction in the discount rate
c. an increase in the size of the federal budget deficit
d. a reduction in the required reserves imposed on the banking system

Question 2

Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately:
a. 10 percent.
b. 12 percent.
c. 17 percent.
d. 20 percent.
e. 25 percent.