() Listen Who would be included in the labor force? A) Homer, who is waiting for his new job to start O B) Michelle, who has become discouraged looking for a job and has quit looking O C) Derrick, an unpaid homemaker O D) None of the above would be included in the labor force.Question 49 (1 point) Listen Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called A) the natural rate of unemployment. B) cyclical unemployment. C) structural unemployment. O D) frictional unemployment.Listen The labor force equals the O A) number of people employed. ( B) number of people employed plus the number of people unemployed. O C) number of people employed plus the number of people unemployed plus teenagers between ages 14 and 16 who work at least 10 hours a week. O D) adult population. zoom MAR AListen According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in: A) velocity. B) unemployment. ( C) the price level. ( D) real GDP. MAR zoom D 20 tv 4Question 46 (1 point) () Listen The velocity of money is the A) rapidity of price increases during inflation. B) number of times per year each dollar is used to transact an exchange. C) number of times the price level increases during a year. (D) number of times per year each product is purchased during the year. MAR zoom 20 dis tv370. Question 45 (1 point) Listen If M stands for the money supply, V for the velocity of money, P for the average selling price, and Q for the output of goods and services, the equation of exchange is: A) MP = VQ. O B) MV = PQ. O CIMQ = VP. D) MP = PQ. O zoom6 In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 7.568 million, the 9 labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about 12 O A) 64.6% and 8.2%. 15 O B) 64.6% and 5.3%. 18 O C) 59.3% and 8.2%. O D) 59.3% and 5.3%.Listen An increase in the money supply: O A) lowers the interest rate, causing a decrease in investment and an increase in GDP. O B) lowers the interest rate, causing an increase in investment and a decrease in GDP. C) lowers the interest rate, causing an increase in investment and an increase in GDP. (D) raises the interest rate, causing an increase in investment and an increase in GDP N 200m A 20Question 42 (1 point) Listen When the Fed expands the money supply, interest rates: ( A) rise. ( B) fall. ( C) are unaffected. ( D) rise and then fall. MAR zoom 4 20Question 41 (1 point) () Listen If the Fed wants to raise interest rates, then it can use its open market operations to: A) increase the money supply. B) decrease the money supply. C) increase money demand. (D) decrease money demand. zoom GOD MAR A 20 us tvListen Which of the following is correct? O A) Labor force = number of employed. O B) Labor force = population - number of unemployed. O C) Unemployment Rate = number of unemployed/ (number of employed + number of unemployed)*100 OD) Unemployment Rate = number of unemployed/adult population *100. N zoom MAR A) Listen The demand for money curve shows that there is an inverse relationship between the quantity of money demanded and the: A) quantity of money supplied. ( B) gross domestic product (GDP). ( C) price level. ( D) interest rate. MAR zoom 20 tv N NEWListen Who is included in the labor force by the Bureau of Labor Statistics? A) Chris, an unpaid homemaker not looking for other work O B) Marcus, a full-time student not looking for work O C) Gabe, who does not have a job, but is looking for work O D) None of the above is correct. MAR zoom A "tvQuestion 37 (1 point) ()Listen When people hold money to transact purchases they expect to make, this is known as the: (A) precautionary demand for money. ( B) liquidity demand for money. C) transactions demand for money. ( D) speculative demand for money. zoom MAR A 20 atvQuestion 36 (1 point) =[ 4t | > | The stock of money people hold to pay everyday predictable () A) transactions demand for holding money. () B) precautionary demand for holding money. O C) speculative demand for holding money. () D) store of value demand for holding money. M?.'O.a i [ 54 @U . Question S5 (1 point) () Listen Which of the following would cause the money supply to expand? (A) An open market purchase by the Fed. B) A reduction in the discount rate. C) A reduction in required ratios. O D) All of the above. zoom MAR A 20 OQuestion 34 (1 point) ) Listen Which of the following actions by the Fed would increase the money supply? A) Reducing the required-reserve ratio. B) Selling government bonds in the open market. C) Increasing the discount rate. (D) None of the above. MAR zoom A 20 atv NOQuestion 33 (1 point) () Listen The money supply will grow faster through deposit creation when the required reserve ratio is: A) high and banks hold excess reserves. (B) high and banks cannot find good customers to lend to. C) low and banks are able to lend out all of their excess reserves. (D) low and banks are unable to loan out all of their excess reserves. 66 zoom MAR A atvQuestion 32 (1 point) Listen The federal funds rate is: (A) the minimum amount of reserves the Fed requires a bank to hold. (B) the interest rate that the Fed charges banks who borrow from it. (C) the interest rate on loans made by banks to other banks D) the maximum percentage of the cost of a stock that can be borrowed from a bank, with the stock offered as collateral. MAR 20 N zoom 4 G tvListen When the Fed lowers the discount rate, it: (A) lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public. O B) raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public. 9) increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public. O D) decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public. MAR zoom A G 20 atvQuestion 30 (1 point) Listen Which of the following policy actions by the Fed would cause the money supply to decrease? A) An open-market purchase. B) A decrease in required-reserve ratios. ( C) A decrease in the discount rate. (D) None of the above. zoom A G OOHQuestion 29 (1 point) Listen Which of the following policy actions by the Fed would cause the money supply to increase? A) An open-market sale of government securities. (B) An increase in required-reserve ratios. C) A decrease in the discount rate. ( D) All of the above. Question 30 (1 point)Question 28 (1 point) )Listen During a period of inflation, the Fed is likely to: (A) sell government bonds to banks in order to reduce the amount of loanable funds. B) buy government bonds from banks in order to reduce the amount of loanable funds. C) raise taxes in order to reduce the money supply. (D) cut the required reserve ratio in order to reduce the amount of excess reserves banks have to loan out. 166 zoomQuestion 27 (1 point) ) Listen When the Fed purchases government securities, it: O A) increases banks' reserves and makes possible an increase in the money supply. (B) decreases banks' reserves and makes possible a decrease in the money supply. ( C) automatically raises the discount rate. ( D) has no effect on either the money supply or the discount rate. Question 28 /1 mint) zoom MAR stv AQuestion 26 (1 point) ) Listen In a simplified banking system in which all banks are subject to a 10 percent required reserve ratio, a $1,000 open market sale. by the Fed to a bank would cause the money supply to: A) increase by $1,000. B) increase by $100,000. C) decrease by $10,000. ( D) remain unchanged. zoomQuestion 25 (1 point) Listen If the Fed wishes to increase the money supply then it should: A) increase the required reserve ratio. ( B) increase the discount rate. C) buy government securities on the open market. ( D) do any of the above. Question 26 (1 point) Listen