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The Relationship Between Interest Rates and Unemployment in the Short

Question 19

Multiple Choice

The relationship between interest rates and unemployment in the short run is:


A) when interest rates go up, economic activity declines and unemployment rises
B) when interest rates go down, economic activity declines and unemployment rises
C) when interest rates go up, economic activity increases and unemployment increases
D) when interest rates go down, economic activity increases and unemployment increases
E) none of the above is found in a pattern

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