The ________ the desired reserve ratio, the ________ the ________ in the quantity of money created from an initial increase of 100,000 in the monetary base.
A) smaller; larger; decrease
B) larger; larger; decrease
C) larger; smaller; decrease
D) smaller; larger; increase
E) larger; larger; increase
Question 2
Refer to Figure 19.3. At the exchange rate of 120 yen per dollar, the United States is experiencing a
A) balance of payments deficit. B) balance of payments surplus.
C) capital account deficit. D) current account surplus.
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