An increase in the currency drain ratio ________.
A) decreases the size of the money multiplier
B) increases the size of the money multiplier
C) increases the deposits in all banks
D) decreases the size of the monetary base
E) increases the size of the monetary base
Question 2
If the price of oil rises, the
A) AD curve and the AS curve shift rightward, the price level rises, and real GDP decreases.
B) AS curve shifts leftward, the price level rises, and real GDP decreases.
C) AD curve and the AS curve shift leftward, real GDP decreases, and the price level rises.
D) AD curve shifts rightward, real GDP increases, and the price level rises.
E) AS curve shifts leftward, the price level rises, and real GDP increases.
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