6. Which of the following statement about monetary policy is NOT correct A. A central bank cannot perfectly control total money supply because consumers can decide how much money they prefer to deposit at commercial banks. B. As benchmark interest rate in the US, the federal funds rate the interest rate that banks charge each other on short-term loans of reserves. C. To implement monetary policy, the Federal Reserve can change money multiplier by changing reserve-deposit ratio. D. In the US, commercial banks cannot set up the amount of deposit as reserves beyond the required level (reserve requirement). W 7. In a closed economy, income equals expenditure because of which of the following A. Total expenditure of consumers must be equal to the income of producers. B. The influence of governments on individual markets. C. GDP does not include intermediate goods in some cases. D. GDP does include all expenditures. I 8. Inflation will be reflected (can cause) as the directly proportional change of A. Total money supply increase from a central bank. B. Nominal wage and nominal interest rate. C. Nominal wage growth, but not nominal interest rates. D. Banks that have market power and refuse to lend money. 9. For the classical dichotomy, which of the following is NOT influenced by changes in the quantity of money A. Nominal GDP B. Nominal interest rates C. Unemployment rate D. Hourly wages 10. Suppose economists have found current job separation rate (s) and job finding rate (f) in the US are 5% and 85%, Then how much is the current natural rate of unemployment of the US? A. Natural rate of unemployment is 4.76 percent. B. Natural rate of unemployment is 5.56 percent. C. Natural rate of unemployment is 5.88 percent. D. Natural rate of unemployment is 6.25 percent