Assuming a fully loaned-up banking system and a deposit expansion multiplier of 2, a $10 million government expenditure financed by sales of securities to the banking system will cause the money supply to
A) remain unchanged.
B) rise by $5 million.
C) rise by $10 million.
D) rise by $20 million.
A
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Which one of the following is taken into account by GDP?
A. Custom lawn care services
B. Household production
C. Leisure time
D. Illegal production
School vouchers are
A. provided by the government. B. provided by private organizations. C. public funds to be used for private tuition. D. all of these answer options are correct.
Which of the main economic schools of thought would believe that the government should undertake a tax policy stressing work and investment incentives?
A. Rational expectations B. Classical C. Supply-side D. Keynesian
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In Exhibit 3-11, in Panel A the movement from point A to point B describes a(n):
A. increase in demand and an increase in the quantity supplied. B. increase in the quantity demanded and an increase in supply. C. decrease in demand and a decrease in the quantity supplied. D. decrease in the quantity demanded and a decrease in supply.