QUESTION 13All else equal, which of the following would increase the unemployment rate?(i)an increase in the number of women who return to work after being stay-at-home mothersa preference among older men to retire earlyan increase in the maximum number of weeks for which someone can receive government unemployment benefitsan increase in the number of previously unemployed women who stop looking for work and become discouraged workers(i) and (ii) only(ii)(iii)(iv)a.(iii) only(ii) and (iii) only(ii), (iii), and (iv) onlyb.С.d.adQUESTION 14Assume that the adult population of Japan is 112.5 million. If 20 million are unemployed and 50 million are employed, then the unemployment rate is approximatelya.24%.b.18%.С.29%.d.6%.aO O O O QUESTION 15Unions contribute tocyclical unemployment.frictional unemployment.a.b.С.seasonal unemployment.d.structural unemployment.aQUESTION 16You receive money as payment for taking care of your neighbors' dog. This best illustrates which function of money?a.medium of exchangeb.unit of accountC.store of valued.liquidityaO ODC

Unemployment rate would increase due to the following reason.

QUESTION 15 Unions contribute to cyclical unemployment. frictional unemployment. seasonal unemployment. structural unemployment. a. b. C. d. d. QUESTION 16 You receive money as payment for taking care of your neighbors' dog. This best illustrates which function of money? a. medium of exchange b. unit of account C. store of value d. liquidity a b

QUESTION 15 Unions contribute to cyclical unemployment. frictional unemployment. seasonal unemployment. structural unemployment. a. b. C. d. d. QUESTION 16 You receive money as payment for taking care of your neighbors' dog. This best illustrates which function of money? a. medium of exchange b. unit of account C. store of value d. liquidity a b

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An increase in ________ decreases the quantity of money people want to hold. a. the price level b. real GDP c. the interest rate d. the quantity of money
What effect does inflation have on the purchasing power of money? A. It increases the purchasing power of money. B. It decreases the purchasing power of money. C. It has no effect on the purchasing power of money. D. It initially decreases but then increases the purchasing power of money over time.
In an economy, the banks prefer to keep 25% of their deposits in reserve. The population likes to keep their currency holdings equal to 10% of the deposits. Initially, there was zero money in the economy. Then the central bank buys $120 worth of T-bills from a household. The household receives $120 on its checking account. 1. the commercial bank formed reserves and gave out a loan. The population allocated the lent funds between the currency in pockets and checkable accounts. Before anything else happens, how much money is there in the economy at the end of Round 1? ANSWER: 288 For question 1 How is this answer obtained?, How would you solve question 2. 2. In Round 2, more lending, borrowing, and reserve formation takes place. How much is in DEPOSITS in the economy at the end of Round 2?
Which type of money has the lowest opportunity cost? a. silver coins b. fiat money c. commodity money d. diamonds e. gold coins
According to the quantity theory of money, if there is a significant increase in money supply there will be an increase in the a. Unemployment rate b. Loanable funds market c. Price level d. Real interest rate
32. Trade restrictions discriminate against foreign producers and benefit economic progress. True or false 36. The government's responsibility for stabilizing the value of the monetary unit involves _________________________________. Response option group a. the application of appropriate fiscal policies and effective control over the money supply b. the application of appropriate fiscal policies c. the application of appropriate fiscal policies and effective control over money demand d. effective control over money supply and demand 37. Which of the following results can be attributed to sound fiscal policy? Response option group a. higher budget deficit b. higher unemployment c. higher price levels d. more jobs
Fiat money isa. a type of money with intrinsic value.b. a type of money set by government decree.c. any asset used as the medium of exchange.d. any asset used as the unit of account.
Answer each question with one or multiple answer. 3. Who controls monetary policy? A) The Federal Reserve B) Government budgets C) The executive branch D) Congress 4. What is money? A) The total amount of money the banks have under their control. B) A commodity that is widely accepted for the purposes of exchange and in the repayment of debts C) Currency used in exchange for other goods D) Any good that is widely accepted for the purposes of exchange and in the repayment of debts.
8 During rapid inflation or hyperinflation: a. The real value of money falls. b. People will be more willing to hold their wealth in the form of money c. The use of money to undertake transactions will increase. d. The real value of money remains the same.
23. Fiat money is _________. a. comprised only of demand deposits. b. money because the government asserts that it is. c. Money which is “resting” in a commercial bank vault. d. Money which can be redeemed for an intrinsically valuable commodity such as gold.
Quantity Theory of Money Use the quantity equation to fill in the blanks in the following table. Price Level (P) Real Output (Y) Money Supply (M) Velocity of Money M $1 $10,000 $5,000 $1 $15.000 $2 $25.000 $8.000 $32.000 2 pts Question 4 Inflation and Interest Rates Use the equation relating inflation and interest rates to fill in the blanks in the following table. Nominal Interest Rate ) Inflation Rate ) Real Interest Rate () 275 4.5 25 3.5 2.
Question 45 By definition, the velocity of money is the a) difference between this year's inflation rate and last year's. b) inverse of the time the average commercial transaction takes. c) number of individual commercial transactions occurring each year. d) rate at which the money supply is growing. e) number of times per year a unit of money changes hands.