An increase in demand deposits would ____ M1 and ____ M2. a. ...

[ENagel]

An increase in demand deposits would ____ M1 and ____ M2.
 a. increase; increase.
 b. not change; increase.
  c. decrease; decrease.
 d. not change; decrease.

Question 2

_____ believe that a government that takes an active role in the economy may do more harm than good because economic policy operates with a long and variable lag.
 a. Traditional Keynesians
  b. Keynesians
  c. Monetarists
  d. Classical economists
  e. New classical economists

[Ahnyah]

Answer to Question 1

a

Answer to Question 2

c