If a large number of individuals file unemployment claims while ...

[swpotter12]

If a large number of individuals file unemployment claims while working in the underground economy:
 a. the unemployment rate overstates the level of unemployment.
 b. the unemployment rate understates the level of unemployment.
 c. the accuracy of the unemployment rate is not affected.
 d. discouraged worker statistics will underestimate the true state of frustration by job seekers.

Question 2

A country would tend to experience currency depreciation relative to other countries if:
 a. the profitability of investments in other countries increases relative to that country.
 b. people in the foreign currency markets expect the value of the currency to fall in the near future.
  c. the foreign demand for its exports decreases.
 d. any of the above occurs.

[al]

Answer to Question 1

a

Answer to Question 2

d