In the real business cycle model, unemployment is ________

Capital deepening is the only mechanism by which economies can grow

Indicate whether the statement is true or false

The preferred asset ratio "U/D" affects the M2 money multiplier because:

a. Actually, it is does not affect the M2 money multiplier because customary reserves are not a part of M2. b. Funds kept in customary reserves reduce financial institution's ability to lend. c. U/D affects the required reserves financial institutions must hold and thereby affects the banking system's lending ability. d. U/D determines the funds flowing into near-money accounts. e. None of the above.