Technological progress should lead to an unchanged investment function. less saving. a rightward shif in the investment function. a downward movement along the investment function. QUESTION 29 The Fed s rosponsible for minting coins. han 15 Federal Reserve banks and goveming boards in New Yook and Chicago. is responsible for conducting U.S. flscal policy distributes Federal Reserve noles, which are paper currency QUESTION 30 The FDIC helps prevent inflation. risky behavior on the part of bankers. bank runs. isky bohavior on the part of depositors. QUESTION 31 The International Monetary Fund is the bank that causes international financial crisis when the reserves are too high. is a central benk like the Federal Reserve System. is a multinational organization that aims to promote world economic growth through more financial stability. is a multinatornal agency that specializes in making loans to promote long-term development and growth in developing countrles. QUESTION 32 The Phillips curve is a positive relationship between the unemipleyment rate and the real Gross Domento Product (GDP) level. a negative reiationship between the inflation rate and the unemployment rate, at least in the short run. a posittwe refationship between price atablity and constant, small-incerement changes in the fiscal pollicy on the part of the Fed a poelive relationship in the lang run between the rate of inflation and the rate of unemployment. One key assumption of the classical model is money illusion cannot fool workers. government spending plays a major role. wages are stichy. prices are sticky. QUESTION 24 Portfolio investment is defined as the purchase of less than 40 percent of the shares of ownership in a company in another country. the acquisition of more than 40 percent of the shares of ownership in a company in another country. the divershication of purchasing shares in many companios in one country so that risk is kept to a minimum. None of these QUESTION 25 Say's law explains how lang-term real Gross Domestic Product (GDP) stablity is achioved in the classical model. how the economy can go into recession why economies experience business cycles. how long-run real Gross Domestic Product (GDP) stability is achleved in the Koynesian model. QUESTION 26 Stagnation means a low rate of imflation coupled with a rate of unemployment betow the natural rate. high rate of inflation coupled with a very low rate of unemployment. low rate of inflation coupled with a very high rate of unemployment. high rate of inflation coupled with a high rate of unemployment. QUESTION 27 The "currency" of the IMF is the Special Drawing Right. U.S. dolar. Intemational Currenoy Unt. IMF Dollar