If banks faced a 100 percent reserve requirement, the money ...

[CQXA]

If banks faced a 100 percent reserve requirement, the money multiplier would be:
 a. 0.1.
 b. 1.0.
 c. 10.
 d. 100.

Question 2

In the Keynesian region of the aggregate supply curve:
 a. increases in aggregate demand are associated with decreases in output, but not with increases in prices.
  b. decreases in aggregate demand are associated with increases in prices, but not with increases in output.
  c. increases in aggregate demand are associated with increases in output, but not with increases in prices.
  d. decreases in aggregate demand are associated with increases in output, but not with increases in prices.
  e. increases in aggregate demand are associated with increases in prices, but not with increases in output.

[djpooyouma]

Answer to Question 1

b

Answer to Question 2

c

[CQXA]

Excellent

[Sarahjh]

Gracias!