If the monetary base doubles but the ratios of currency/deposit and reserves/deposits remain the same, then:
a. The money supply doubles.
b. The money supply quandrouples.
c. The money supply changes by two times the money multiplier.
d. The money supply remains unchanged.
C
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Refer to Figure 4-1. What is the total amount that Arnold is willing to pay for 3 burritos?
A) $1.50 B) $6.00 C) $7.00 D) $10.00
Giving presents on Christmas does NOT generate a deadweight loss if
A) all gift are money. B) everybody gets exactly want she wants. C) nobody can be made better off by returning the gift and purchasing a different one. D) All of the above.
If equilibrium level of real Gross Domestic Product (GDP)
is less than the full-employment real Gross Domestic Product (GDP) consistent with the position of the economy's long-run aggregate supply (LRAS) curve, then the difference between full-employment real Gross Domestic Product (GDP) and current equilibrium real Gross Domestic Product (GDP) is A) an aggregate demand shock. B) an aggregate supply shock. C) a recessionary gap. D) an inflationary gap.
Which one of the following is not part of the U.S. money supply?
A. Dollar bills B. Demand deposits C. Travelers checks D. Gold