Everything else held constant, a decrease in the excess reserves ratio causes the M1 money multiplier to ________ and the money supply to ________
A) decrease; increase
B) increase; increase
C) decrease; decrease
D) increase; decrease
B
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Which of the following most accurately describes what the text says about mercantilists?
a. They tried to build up the military power of their economies. b. They tried to produce full employment. c. They confused gold and silver with true wealth. d. They were merely spokesmen for special interest groups.
The current debate about fiscal and monetary policy tends to focus on
a. which policy is less destabilizing. b. which policy is more effective. c. whether the Fed can control the money supply. d. which policy works more quickly.
When output is 100 units, the firm's total fixed cost is $50. What will this firm's total fixed cost be if output doubles to 200 units?
A) $1,000 B) $50 C) $100 D) Can't tell from the information provided.
Which of the following is NOT included in M1?
A) deposits in checking accounts B) deposits in checking accounts that pay interest C) savings accounts D) traveler's checks