If the Fed decreases the monetary base by $100 million and the money multiplier is 4, M1 will
A) rise by $400 million.
B) fall by $400 million.
C) rise by $25 million.
D) fall by $25 million.
B
You might also like to view...
Compared to the 1973 to 1995 period, average real earnings of workers ________ from 1960 to 1973.
A. grew at about the same rate B. grew more slowly C. grew more rapidly D. declined
When economists speak of normal goods they mean goods for which
A) the demand curve slopes downward. B) marginal utility is positive. C) marginal utility decreases as consumption increases. D) demand decreases when incomes fall.
If the interest rate is 20 percent, the present value of $10,000 to be received 20 years from today is about
A) $6,944. B) $14,400. C) $383,376. D) $261.
The Federal Reserve Open Market Committee allows representatives of the President and Congress to sit on its meetings
a. True b. False