The money multiplier is used to determine how much the
A) quantity of money increases when the monetary base increases.
B) monetary base increases when the quantity of money increases.
C) monetary base increases when the Fed purchases government securities.
D) monetary base increases when the Fed sells government securities.
E) quantity of money increases when the required reserve ratio increases.
A
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Which of the following is a service?
a. anything that is scarce and that satisfies unlimited human wants b. a thing for which people pay money c. an intangible activity that satisfies human wants d. any output produced by a service-sector industry, such as fast food e. something less desirable than a good
The change in aggregate expenditures resulting from a movement in the domestic price level, which in turn changes the price of domestic goods in relation to foreign goods, is known as the:
a. international trade effect. b. multilateral equilibrium condition. c. international exchange rate effect. d. magnified international pricing effect. e. international deficit effect.
A company’s ability to pay its debts is measured by:
A. solvency tests. B. profitability tests. C. profitability ratio. D. liquidity ratio.
The Fed’s tools of monetary policy are
A. government expenditures, interest rates, and taxation. B. open-market operations, lending to banks, reserve requirements, and paying interest on reserves. C. the money supply, government purchases, and taxation. D. none of these.