When the interest rate falls,
a. the opportunity cost of holding money rises.
b. people shift out of holding interest-yielding bonds into holding money.
c. the quantity of money people will hold decreases.
d. investment spending decreases.
e. real GDP will decrease.
Question 2
Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.
a. 1,425
b. 1,450
c. 1,500
d. 1,525
e. 2,000
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