A decrease in the reserve requirement A) decreases the money ...

[kfurse]

A decrease in the reserve requirement
 
  A) decreases the money supply, which leads to decreased interest rates and a rise in investment spending.
  B) increases the money supply, which leads to increased interest rates and a fall in investment spending.
  C) increases the money supply, which leads to decreased interest rates and a rise in investment spending.
  D) decreases the money supply, which leads to increased interest rates and a fall in investment spending.

Question 2

The table above gives data for the nation of Syldavia. The sum of the current account balance, capital and financial account balance, and the official settlements account balances of Syldavia is equal to
 
  A) 10 billion. B) -10 billion. C) 40 billion. D) 30 billion. E) zero.
 
  The table has some of the U.S. balance of payments account.

[jordangronback]

Answer to Question 1

C

Answer to Question 2

E