In the long-run, money market equilibrium determines A) the ...

[APUS57]

In the long-run, money market equilibrium determines
 
  A) the real interest rate.
  B) the value of money.
  C) real GDP.
  D) the nominal interest rate
  E) velocity.

Question 2

What is the effect of an increase in unemployment benefits on the unemployment rate?
 
  What will be an ideal response?

[Christopher]

Answer to Question 1

B

Answer to Question 2

An increase in unemployment benefits decreases the overall costs of being unemployed. As a result it increases the length of time unemployed workers search for a new job and hence increases the unemployment rate.

[APUS57]

TYSM

[bulacsom]

Thanks for the timely response, appreciate it