Suppose the currency drain ratio is 33.33 percent and the desired ...

[jrubin]

Suppose the currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent. The money multiplier equals
 
  A) 3.00. B) 3.08. C) 2.50. D) 6.67. E) 4.27.

Question 2

At the start of a cost-push inflation,
 
  A) the price level rises and real GDP does not change.
  B) the price level remains constant and real GDP increases.
  C) the price level rises and real GDP decreases.
  D) the price level remains constant and real GDP decreases.
  E) the price level and real GDP both increase.

[Perkypinki]

Answer to Question 1

B

Answer to Question 2

C