Author Question: If the Fed reduces the discount rate, which of the following are most likely to result? a. The ... (Read 60 times)

jjjetplane · **on:** Jun 30, 2018

If the Fed reduces the discount rate, which of the following are most likely to result?
a. The money supply curve shifts rightward, and the equilibrium interest rate falls in the money market.
b. Investment declines, causing the aggregate demand curve to shift leftward, reducing equilibrium real GDP and thus slowing the economy.
c. Investment rises, causing the aggregate demand curve to shift rightward, increasing equilibrium real GDP and thus accelerating the economy.
d. Both a. and b. above are correct.
e. Both a. and c. above are correct.

Question 2

Which of the following people would be officially counted as unemployed?
a. A person who works only 5 hours per week for pay.
b. A full-time college student who chooses not to have a paying job.
c. A family member who works 20 hours per week without pay.
d. A jobless high-school graduate who is actively looking for work.