Which of the following statements is FALSE? (a) During a recession, the number o

Question

Which of the following statements is FALSE?

(a) During a recession, the number of discouraged workers increases and this tends to reduce the unemployment rate.

(b) A low national unemployment rate does not mean that the entire nation is growing and producing at the same rate.

(c) The national unemployment rate does not tell us how the burden of unemployment is distributed across the population.

(d) If the unemployment rate is 10%, this means that on average people have been unemployed for 10% of the year.

As the average dollar amount of each transaction increases,

(a) the demand for money will decrease.

(b) the demand for money will increase.

(c) the quantity demanded of money will increase.

(d) the quantity demanded of money will decrease

An increase in the money supply, ceteris paribus,

(a) will decrease the interest rate.

(b) will increase Treasury note rates.

(c) will increase the excess demand for money.

(d) will decrease the quantity demanded for money.

When economists refer to "tight" monetary policy, it means the Fed is taking actions that will

(a) increase the demand for money.

(b) decrease the demand for money.

(c) expand the money supply.

(d) contract the money supply.

Explanation / Answer

1)(c) The national unemployment rate does not tell us how the burden of unemployment is distributed across the population is false

2)c).the quantity demanded of money will increase

3)(d) will decrease the quantity demanded for money

4)(d) contract the money supply.

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