+x (1) 11. Cyclical unemployment is a. F This is because it takes time to find a job. b. C. Occurs when the economy deteriorates. Generated by competition among job seekers. d. It occurs when wages remain high. +x () 12. According to the natural rate of unemployment hypothesis, a. Policies to reduce the unemployment rate are effective, but policies to reduce the inflation rate are ineffective. b. Both policies to lower the unemployment rate and policies to lower the inflation rate are effective. C. Policies to reduce inflation are effective, but policies to reduce unemployment are ineffective. d. Both the policy to lower the unemployment rate and the policy to lower the inflation rate are ineffective. A W T WebAssign JR ... () 13. What is the reserve ratio? UR JRAN a. It is the ratio of deposits that can be lent out, and the money supply decreases as the reserve ratio rises. b. It is the percentage of deposits that cannot be lent, and the money supply increases as the reserve ratio rises. Course He.L C. It is the percentage of deposits that cannot be lent, and as the reserve ratio rises, the money supply decreases. A d. It is the ratio of deposits that can be lent out, and the money supply increases as the reserve ratio rises. W + (4) 16. Which of the following do you think is the correct characteristic of the IS-LM model? a. The point where the IS curve and the LM curve intersect indicates the long-term equilibrium price and equilibrium income. b. The goods and services market is in equilibrium on the LM curve. C. The LM curve depicts the relationship between price and income. d. The IS curve depicts the relationship between the interest rate and equilibrium income. MacBook Pro A W X slate.google.com TI a. b. WebAssign JR ... C. +X (14) < 19. In the Mundell-Fleming model, if a small open economy adopts a floating exchange rate, d. Expansionary fiscal policy leads to an increase in the money supply and an increase in net exports. R JRAM... Expansionary fiscal policy leads to higher exchange rates and lower net exports. Expansionary fiscal policy leads to a decrease in the money supply and an increase in net exports. A Course He... Expansionary fiscal policy leads to lower exchange rates and lower net exports. O G W 689 F +x (5) 20. According to the international financial trilemma, if multiple countries use the same currency (without restrictions on international fund transfers), such as countries adopting the euro, a. Both fiscal policy and monetary policy cannot be taken. b. Both fiscal and monetary policies become effective C. Fiscal policy can be taken, but independent monetary policy cannot be taken. d. Monetary policy can be taken, but independent fiscal policy cannot be taken. MacBook Pro A W