Which of the following has proved to be spectacularly false, at least recently?
a. as an expansion proceeds, people will hold no more cash
b. as an expansion proceeds, banks will hold no more excess reserves
c. the oversmplified money multiplier formula is predicated on two critical assumptions
d. All of the above are false.
b
You might also like to view...
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Answer the next question on the basis of the following information.TFC = Total Fixed Cost MC = Marginal CostTVC = Total Variable Cost Q = Quantity of Output P = Product Price Select the marginal cost.
A. 
B. 
C. 
D. 
The Fed's policy actions of reacting to higher inflation by raising the real interest rate during 2004-2006 were
A) upward movements along the monetary policy curve. B) downward movement along the monetary policy curve. C) upward shifts of the monetary policy curve. D) downward shifts of the monetary policy curve.
Gold is:
A. very important for monetary policy in the U.S. B. a small portion of the Fed's assets. C. the most important asset on the Fed's balance sheet. D. extremely important as an asset for the Fed.