________ increases the size of the money multiplier
A) An open market sale of government securities by the Fed
B) An increase in the currency drain ratio
C) A reduction in the desired reserve ratio
D) An open market purchase of government securities by the Fed
E) An increase in the size of open market operations
C
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Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output
A) lower; decrease B) lower; have an ambiguous effect on C) have an ambiguous effect on; decrease D) raise; decrease
Unemployment taxes are collected from both employees and employers.
A. True B. False C. Uncertain
If a country experiences deflation, its currency will increase in value relative to its trading partners, ceteris paribus
Indicate whether the statement is true or false
Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when the overall price level increased by 5 percent. During this period, the real price of silver
a. increased. b. decreased. c. stayed the same. d. might have increased, decreased or stayed the same; more information is needed to be sure.