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Author Question: ________ increases the size of the money multiplier. A) An open market sale of government ... (Read 82 times)

tfester

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on: Jun 29, 2018
________ increases the size of the money multiplier.
 
  A) An open market sale of government securities by the Fed
  B) An increase in the currency drain ratio
  C) A reduction in the desired reserve ratio
  D) An open market purchase of government securities by the Fed
  E) An increase in the size of open market operations

Question 2

A balance of payments deficit occurs if
 
  A) the demand for a nation's currency exceeds the supply of the currency at the current exchange rate.
  B) exports exceed imports.
  C) the supply of a nation's currency is equal to the demand for the currency at the current exchange rate.
  D) the supply of a nation's currency exceeds the demand for the currency at the current exchange rate.


aidanmbrowne

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  • Posts: 305
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

D


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