Author Question: In the long-run, money market equilibrium determines A) the real interest rate. B) the value of ... (Read 14 times)

APUS57 · **on:** Jun 29, 2018

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 · **Reply #1 on:** Jun 29, 2018

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.