With quantitative easing, the Fed purchases _____________________. With open market operations, the Fed purchases ______________________________
A) short-term and long-term government securities, as well as private sector bonds and securities; short-term government securities
B) short-term government securities, only; long-term government securities, only
C) long-term government securities, only; short-term government securities, only
D) government securities, only; private sector bonds and securities
A
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Which of the following is not a basic monetary policy tool used by the Fed?
A. The discount rate. B. Reserve requirements. C. Open-market operations. D. The income tax rate.
With the exception of during recessions, workers in Canada are eligible for unemployment benefits for about twice as long a period of time as workers in the United States. As a result
A) the unemployment rate in Canada is usually higher than in the United States. B) the opportunity cost of job search in Canada is lower than in the United States. C) frictional unemployment is higher, on average, in the United States than in Canada. D) the average duration of unemployment is longer in the United States than in Canada.