18 Which of the following is the path through which contractionary monetary poli

Question

18

Which of the following is the path through which contractionary monetary policy works?

Money down implies interest rate up implies investment down implies income down.

Money down implies interest rate down implies investment up implies income down.

Money down implies interest rate up implies investment up implies income down.

Money down implies interest rate down implies investment down implies income down.

19

Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?

Natural unemployment

Structural unemployment

Frictional unemployment

Cyclical unemployment

Explanation / Answer

18 Money down implies interest rate up implies investment down implies income down.

19 Cyclical unemployment

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