What Is the Net Effect of Illegal Immigration on Total

question 195

Multiple Choice

What is the net effect of illegal immigration on total employment in the United States?

• A) The net effect is zero, as illegal immigrant workers displace domestic-born workers on a one-for-one basis.
• B) Total employment increases, but with some substitution of illegal immigrants for domestic-born workers.
• C) Total employment decreases.
• D) Total employment increases, with no displacement of or substitution for domestic-born workers.

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Definitions:

Monetarism

A school of economics that places paramount importance on money as the key determinant of the level of prices, income, and employment.

Velocity of Circulation

The rate at which money is exchanged in an economy, often used to represent the activity level in the financial system.

Expected Profit Rate

The anticipated return on an investment, taking into account both the probability of gains and the risk of losses.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.