Author Question: Contractionary policies are policies designed to A) increase the level of real GDP. B) increase ... (Read 280 times)

Kikoku · **on:** Jun 30, 2018

Contractionary policies are policies designed to

A) increase the level of real GDP. B) increase the federal deficit.
C) reduce the level of real GDP. D) increase government spending.

Question 2

If the actual money multiplier equals the potential money multiplier and if the Federal Reserve wishes to increase the money supply by 500 when the reserve ratio is 10 percent, it should

A) buy 5000 of government bonds. B) sell 5000 of government bonds.
C) sell 50 of government bonds. D) buy 50 of government bonds.