In the DMP model, a decrease in the unemployment insurance benefit
A) increases the unemployment rate.
B) reduces labor market tightness.
C) reduces the unemployment rate.
D) reduces the vacancy rate.
Question 2
The demand for money will fall for each of the following reasons, except
A) more ATMs.
B) higher real GDP.
C) lower interest rates on transactions accounts at banks.
D) more risky banks.