Author Question: An decrease in the price level in the United States will shift the aggregate expenditure line ... (Read 28 times)

kfurse · **on:** Jun 29, 2018

An decrease in the price level in the United States will shift the aggregate expenditure line downward.

Indicate whether the statement is true or false

Question 2

If the Fed lowers the reserve requirement, then this

A) decreases excess reserves, causes banks to reduce their loans, and decreases the money supply.
B) increases excess reserves, encourages banks to make more loans, and increases the money supply.
C) decreases excess reserves, causes banks to reduce their loans, and increases the money supply.
D) increases excess reserves, causes banks to reduce their loans, and increases the money supply.