When the interest rate falls, a. the opportunity cost of holding ...

[jparksx]

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

[allisonblackmore]

Answer to Question 1

b

Answer to Question 2

c