If the money multiplier is 5 and the Federal Reserves issues bonds in the amount of $6 million, what is the final change to the money stock?
A) - $30 million
B) $30 million
C) $1.2 million
D) - $1.2 million
A
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The size of the multiplier depends on
A) the level of autonomous investment. B) the marginal propensity to consume. C) the level of net exports. D) the level of autonomous consumption.
Suppose the 12-month interest rate on a U.S. Treasury bill is 16 percent, and the one-year interest rate on a comparable British Treasury bill is 6 percent. The exchange rate today is $2.00 per pound. What must be the expected exchange rate at maturity for interest rate parity to hold?
a. $1.00 = 0.50 pound b. $1.00 = 0.75 pound c. 1 pound = $2.20 d. 1 pound = $1.80 e. 1 pound = $2.50
Very few societies have used price controls
a. True b. False Indicate whether the statement is true or false
What is the effect on the rate of inflation of the Federal Reserve printing large quantities of currency?
A. increases the rate. B. has no effect on rate. C. decreases the rate.