Excess reserves are the A) amount of reserves held over what ...

[haleyc112]

Excess reserves are the
 
  A) amount of reserves held over what is desired.
  B) amount of reserves banks keep in their vaults.
  C) amount of reserves a bank holds at the Fed.
  D) amount of reserves the Fed requires banks to hold.
  E) same as the required reserves.

Question 2

The multiplier effect
 
  A) explains what causes an expansion.
  B) has no impact on equilibrium expenditure.
  C) reinforces the negative effects of any reduction in spending.
  D) explains what causes a recession.
  E) explains how the economy recovers from a recession.

[reelove4eva]

Answer to Question 1

A

Answer to Question 2

C

[haleyc112]

Thank you

[reelove4eva]

Happy to help you