Author Question: Other things remaining the same, an increase in the price level A) decreases the quantity of real ... (Read 38 times)

SGallaher96 · **on:** Jun 30, 2018

Other things remaining the same, an increase in the price level

A) decreases the quantity of real GDP supplied.
B) decreases aggregate supply.
C) increases aggregate supply.
D) increases the quantity of real GDP supplied.
E) neither changes aggregate supply nor changes the quantity of real GDP supplied.

Question 2

If the reserve ratio is 10 percent and reserves in the commercial banking system increase by 10,000, the maximum possible expansion of demand deposits is

A) 90,000. B) 1,000,000. C) 10,000. D) 100,000.