Cyclical unemployment is high

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Reference no: EM13995935

Which of the following is true if cyclical unemployment is high?

A. Velocity is low.

B. Monetary policy has little effect on the price level.

C. The marginal propensity to consume will be particularly high.

D. The country ’s currency has a low value in foreign exchange markets.

E. The Fed could bring the economy back toward full employment by selling bonds on the open market.

Reference no: EM13995935

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