Question

At the current interest rate, suppose the supply of money is less than the demand for money. Given this information, we know that

Group of answer choices

the price of bonds will tend to fall.

the price of bonds will tend to fall.

production equals demand.

the goods market is also in equilibrium.

the supply of bonds also equals the demand for bonds.

Q2

Suppose a country using the United States' system of calculating official unemployment statistics has 100 million people, of whom 70 million are working age. Of these 70 million, 30 million have jobs. Of the remainder: 20 million are actively searching for jobs; 10 million would like jobs but are not searching; and 10 million do not want jobs at all.

Refer to the information above. The official unemployment rate is

Group of answer choices

0.33

0.2.

0.5

0.66

0.4

Answer 1

1> Since demand of money is more than the supply of money, people would like to sell their bond for money. Thus, the price of bond should fall.

A is correct

2> The ones who are not actively searching for jobs are considered out of labor force.

Thus, total unemployed people are 20 million and total labor force is (20+30)=50 million

Thus, the official unemployment rate is 2/5=0.4