21.Frictional unemployment occurs when the economy's growth loses momentum due to monetary policy changes, foreign...
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21.Frictional unemployment occurs when the economy's growth loses momentum due to monetary policy changes, foreign competition or other external factors and employers begin to reduce their work force. A question requiring a 'True/False' answer.(Required) True False 22. The purchase of securities by the Fed will decrease total legal reserves. A question requiring a 'True/False' answer.(Required) True False 23.The Federal Reserve can keep the Federal funds interest rate at or near its desired level so long as the central bank is willing to offset changes in the demand for reserves by adjustments in the supply of nonborrowed reserves through open market operations. A question requiring a 'True/False' answer.(Required) True False 24. If the Federal Reserve sells securities to depository institutions, one of the following events is not likely to occur, according to the discussion in your text. Which event is not likely to occur? A multiple-choice question with one possible answer.(Required) 1. Total reserves of depository institutions will fall 2. Excess reserves will decline, at least temporarily 3. Loans and investments will decrease 4. Interest rates will fall 5. All of the above are likely to occur following the open-market sales described
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