Which of the following best represents the money supply?
A) Money supply = Monetary base.
B) Money supply = Monetary base / Money multiplier.
C) Money supply = Money multiplier ( Currency in circulation + Reserves).
D) Money supply = (Currency in circulation + Reserves) / Money multiplier.
C
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In the attempt to use deficits to fight the Great Recession, what was the size of the federal government's "stimulus" plan of 2009?
A) $7.87 billion B) $78.7 billion C) $787 billion D) $7.87 trillion
An increase in the demand for green tea raises the price of green tea from $16 a pound to $20 a pound. As a result, quantity supplied increases by 30 percent. Using the midpoint formula, what is the value of the price elasticity of supply?
A) 1.35 B) 1.875 C) 2.22 D) 7.5
A) Given the information above, if full employment GDP were 2,000, would there be an inflationary gap or a recessionary gap? B) What two fiscal policy measures would you recommend to remove the gap?
An increase in the quantity of money supplied shifts the money supply curve to the ________ and the LM curve to the ________, everything else held constant
A) right; left B) right; right C) left; left D) left; right