Contractionary policies are policies designed to A) increase ...

[Kikoku]

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.

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Answer to Question 1

C

Answer to Question 2

D

[Kikoku]

TYSM

[cam1229]

Thanks for the timely response, appreciate it