What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars.
b. The Canadian monetary base falls. The amount depends on the size of the money multiplier
c. The Canadian monetary base might fall or rise.
d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars.
e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.
.D
You might also like to view...
Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). 
If Macrosoft and Apricot make their decision at the same time, then which of the following statements is correct?
A. The game has more than one Nash equilibrium. B. The game does not have a Nash equilibrium. C. The only Nash equilibrium is that both develop a touch-screen t-shirt. D. The only Nash equilibrium is that neither develops a touch-screen t-shirt.
If the Fed buys government securities from the non-bank public, then
A) reserves at banks decrease. B) deposits at banks increase and banks' reserves increase. C) deposits at banks increase and banks' reserves decrease. D) loans at banks decrease. E) deposits at banks decrease and banks' reserves increase.
A price floor in a perfectly competitive market
a. is efficient b. is a Pareto improvement c. is effective only if it is set below the equilibrium price d. transfers some surplus from consumers to producers e. transfers some surplus from producers to consumers
The redistributive mechanics of inflation include all of the following except
A. Wealth effects. B. Income effects. C. Price effects. D. Output effects.