The Quantity of Money Demanded Is Negatively Related to ____

question 15

Multiple Choice

The quantity of money demanded is negatively related to ____ and positively related to _____.

• A)the interest rate, real GDP
• B)the interest rate, unemployment
• C)real GDP, the interest rate
• D)real GDP, the money supply

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Definitions:

Cyclical Unemployment Rate

The rate of unemployment caused by changes in the economic cycle, such as recessions or expansions.

Frictional Unemployment Rate

Frictional Unemployment Rate refers to the percentage of the labor force that is voluntarily moving between jobs, careers, or locations.

Structural Unemployment Rate

The long-term and chronic unemployment that exists even when the economy is at its productive best, often due to mismatches between skills and job requirements.

Overall Unemployment Rate

A percentage that represents the portion of the labor force that is not currently employed but is actively seeking employment.