16. The Phillips curve illustrates the relationship between:
a) Inflation and unemployment
b) GDP and inflation
c) GDP and employment
d) Interest rates and investment
17. The money multiplier represents:
a) The ratio of the money supply to the monetary base
b) The ratio of the money supply to the interest rate
c) The ratio of the money supply to the price level
d) The ratio of the money supply to the exchange rate
18. The aggregate demand curve shows the relationship between:
a) The price level and the quantity of goods and services demanded in an economy
b) The interest rate and investment in an economy
c) The price level and the quantity of money demanded in an economy
d) The exchange rate and the quantity of exports demanded in an economy
19. The aggregate supply curve represents the relationship between:
a) The price level and the quantity of goods and services supplied in an economy
b) The interest rate and savings in an economy
c) The price level and the quantity of money supplied in an economy
d) The exchange rate and the quantity of imports supplied in an economy
20. The loanable funds market is the market where:
a) Banks lend money to borrowers
b) Investors trade financial assets
c) Governments borrow money from international institutions
d) Savers lend money to borrowers
