14. The quantity theory of money assumes that the velocity of money: a. is stable over time. b. moves inversely to the quantity of money. c. is pro-cyclical. d. is counter-cyclical. 15. Which of the following policy combination is expected to result in budget decit but does not affect the trade balance. a. Lower government spending, lower real exchange rate. b. Lower government spending, higher real exchange rate. c. Higher government spending, higher real exchange rate. cl. Higher government spending, lower real exchange rate. '16. Suppose that an economy has the total population of 26 million, of which 70% are adults. The labor force participation rate is 60%, and the size of unemployed labor was 0.5 million. What were the size of the labor force and the unemployment rate in this economy? a. Labor force is 12 million and the unemployment rate is 4.17%. b. Labor force is 12 million and the unemployment rate is 3. 57%. c. Labor force is 8. 4 million and the unemployment rate is 5.95%. d. Labor force is 8. 4 mIllIon and the unemployment rate is 3.57%