Author Question: An increase in the required reserve ratio, say from 10 to 12 percent would: a. decrease the money ... (Read 29 times)

piesebel · **on:** Jun 30, 2018

An increase in the required reserve ratio, say from 10 to 12 percent would:
a. decrease the money supply by a substantial amount.
b. decrease the money supply by a small amount.
c. increase the money supply by a substantial amount.
d. increase the money supply by a small amount.

Question 2

According to the theory of rational expectations, the economy always remains at the natural rate of unemployment, irrespective of policy changes.
a. True
b. False
Indicate whether the statement is true or false