The set of acquired skills and abilities that workers bring to the production of goods and services is:

If the Fed sells U.S. government securities to banks, the federal funds rate ________ and banks' reserves ________

A) falls; increase B) rises; increase C) falls; decrease D) rises; do not change E) rises; decrease

In the short run, when the Fed raises the federal funds rate,

A) the real interest rate is unchanged so investment and consumption expenditure are not changed. B) the real interest rate temporarily falls, thereby increasing investment and consumption expenditure. C) the real interest rate temporarily increases, thereby decreasing investment and increasing consumption expenditure. D) the real interest rate temporarily increases, thereby decreasing investment and consumption expenditure. E) investment and consumption expenditure increase, thereby raising the real interest rate temporarily.