Everything else held constant, an increase in the required reserve ratio will mean ________ in the M2 money multiplier and ________ in the M2 money supply
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
D
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The aggregate supply curve reflects the relationship between the price:
a. of a particular good and the quantity supplied by all firms producing that good. b. of a particular good and the quantity supplied by the aggregate economy. c. level and the quantity supplied of all goods in the economy. d. level and the quantity of all goods purchased in the economy.
Which statement is true?
A. The United States is usually inside our production possibilities curve. B. The United States is usually outside our production possibilities curve. C. The United States is usually on our production possibilities curve. D. None of the statements are true.
Total output includes all of the following except:
A. Household consumption. B. Business investment. C. Imports. D. Government services.
Which of the following is a belief of the monetarists?
A. They think the Great Depression was made worse by poor conduct of monetary policy. B. They believe monetary policy is transmitted to the economy only through its effect on interest rates and planned investment. C. They believe that the interest-investment curve is horizontal. D. They believe the crowding-out effect is insignificant.