An increase in the parameter c, the proportion of money individuals wish to hold as currency, will tend to cause which of the following?
A) an increase in the monetary base (H)
B) a reduction in H
C) an increase in the money multiplier
D) a reduction in the money multiplier
D
You might also like to view...
If the quantity supplied and the price change by the same percentage, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
We would expect the cross price elasticity of demand between digital cameras and film cameras to be positive
Indicate whether the statement is true or false
Criteria for an optimum currency area include all the following except
A) fiscal transfers. B) similar business cycle patterns. C) extensive trade with each other. D) a common language.
Paying money in order to guarantee a certain level of compensation should an adverse event occur is
A. risk aversion. B. risk smoothing. C. risk pooling. D. risk rating.