Author Question: An increase in the money supply: a. raises the interest rate, causing an increase in investment and ... (Read 81 times)

michelleunicorn · **on:** Jun 30, 2018

An increase in the money supply:
a. raises the interest rate, causing an increase in investment and an increase in GDP.
b. lowers the interest rate, causing an increase in investment and an increase in GDP.
c. raises the interest rate, causing a decrease in investment and an increase in GDP.
d. lowers the interest rate, causing a decrease in investment and an increase in GDP.
e. lowers the interest rate, causing a decrease in investment and a decrease in GDP.

Question 2

The unemployment rate will decrease whenever there is a(n):
a. increase in the number of persons classified as unemployed.
b. decrease in the number of unemployed relative to the size of the labor force.
c. decrease in the size of the population and there is no change in the number of persons classified as employed.
d. reduction in the size of the labor force.
e. decrease in the number of unemployed and the population does not change.