Suppose the United States is in the midst of a recession. What will happen to the value of the mpi?

Financing government spending by selling bonds to the public, which pays for the bonds with currency,

A) leads to a permanent decline in the monetary base. B) leads to a permanent increase in the monetary base. C) leads to a temporary increase in the monetary base. D) has no net effect on the monetary base.

Which of the following is most likely to reduce structural unemployment?

a. A reduction in wage rates b. Access to better information on local job openings c. Retraining workers in marketable skills d. Promotion of full employment through government stabilization policies e. Reducing the cost of job loss through enhanced unemployment benefits