Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
D
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The commercial banking system borrows from the Federal Reserve Banks. As a result, the checkable deposits ________.
A. and reserves of commercial banks are both unchanged B. of commercial banks are unchanged, but their reserves increase C. of commercial banks are unchanged, but their reserves decrease D. and reserves of commercial banks both decrease
When the nominal interest rate is ________ the equilibrium interest rate, the quantity of money demanded is less than the quantity of money supplied; when the nominal interest rate is ________ the equilibrium interest rate, the quantity of money
demanded exceeds the quantity of money supplied. A) equal to; less than B) less than; greater than C) greater than; equal to D) equal to; greater than E) greater than; less than
Several adjustments must be made to net domestic product at factor cost in order to calculate GDP. One of these adjustments is adding depreciation. What is depreciation and why must it be added?
What will be an ideal response?
Using the exact formula, the nominal interest rate equals:
a. Real interest rate + Actual inflation + (Real interest x Actual inflation). b. Real interest – Expected inflation. c. Real interest + Expected inflation + (Real interest x Expected inflation). d. Real interest – Expected inflation – (Real interest x Expected inflation).