21 If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely:
A. decrease both the money multiplier and the money supply
B. decrease the money multiplier but increase the money supply
C. increase both the money multiplier and the money supply
D. increase the money multiplier but decrease the money supply
23 Real gross domestic product is best defined as
A. the market value of all final goods and services produced in an economy, stated in the prices of a given year
B. the market value of goods and services produced in an economy, stated in current-year prices
C. all goods and services produced in an economy, stated in the prices of a given year and multiplied by quantity
D. the market value of intermediate goods and services produced in an economy, including exports
21 If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely:
A. decrease both the money multiplier and the money supply
B. decrease the money multiplier but increase the money supply
C. increase both the money multiplier and the money supply
D. increase the money multiplier but decrease the money supply
23 Real gross domestic product is best defined as
A. the market value of all final goods and services produced in an economy, stated in the prices of a given year
B. the market value of goods and services produced in an economy, stated in current-year prices
C. all goods and services produced in an economy, stated in the prices of a given year and multiplied by quantity
D. the market value of intermediate goods and services produced in an economy, including exports
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1. Which of the following both increase the money supply?
an increase in the discount rate and an increase in the interest rate on reserves
an increase in the discount rate and a decrease in the interest rate on reserves
a decrease in the discount rate and an increase in the interest rate on reserves
a decrease in the discount rate and a decrease in the interest rate on reserves
wealth. M1. M2. |
wealth held by people in their savings accounts. wealth held by people in money market mutual funds. everything that is included in M2 plus some additional items |
borrow more from the Fed and lend less to the public. The money supply decreases. borrow less from the Fed and lend more to the public. The money supply increases. borrow less from the Fed and lend less to the public. The money supply decreases. |
the amount of reserves banks must hold against deposits. reserves banks must hold based on the number and type of loans they make. the interest rate at which banks can borrow from the Fed. |
trades require a double coincidence of wants. currency is accepted primarily to make further trades. people must spend time searching for the products they wish to purchase. |
2485 6295 7075 |
decreased both the money multiplier and the money supply. increased the money multiplier and decreased the money supply. decreased the money multiplier and increased the money supply. |
Amber with Tom Rupert with Rob None of the above is correct. |
| 10. Economists use the term money to refer to |
all wealth.
all assets, including real assets and financial assets.
all financial assets, but not real assets.
those types of wealth that are regularly accepted by sellers in exchange for goods and services.
