If the currency drain increases, how can the Fed adjust the monetary base to offset the effect on the quantity of money?
What will be an ideal response?
If the currency drain increases, the size of the money multiplier decreases, which decreases the quantity of money. To maintain the quantity of money at its initial amount by changing the monetary base, the Fed must increase the monetary base.
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An employee who retains earned pension benefits after leaving a job has a pension plan that is
A) whole life. B) guaranteed. C) vested. D) funded.
A price ceiling set below the equilibrium price causes quantity demanded to exceed quantity supplied
a. True b. False Indicate whether the statement is true or false
A real estate salesperson sells a house in 1999 that was built in 1990. How does this transaction get counted in the GDP statistics?
What will be an ideal response?
When you see a mansion and think to yourself that it must be worth a million dollars, you are using money to perform which function?
A) medium of exchange B) unit of account C) store of value D) means of payment E) method of avoiding barter