Author Question: The quantity of money decreases if A) banks loan all excess reserves. B) the Treasury Department ... (Read 117 times)

Medesa · **on:** Jun 29, 2018

The quantity of money decreases if

A) banks loan all excess reserves.
B) the Treasury Department issues fewer government securities.
C) the desired reserve ratio decreases.
D) the Fed buys U.S. government securities.
E) the currency drain ratio increases.

Question 2

The ________ the marginal tax rate, the ________ the effect on aggregate expenditure from a change in investment.

A) smaller; smaller
B) smaller; larger
C) larger; smaller
D) larger; larger
E) More information about the effect on GDP is needed to answer the question.