Author Question: If the money multiplier is 3.0, a 1,000 increase in the monetary base A) increases quantity of ... (Read 85 times)

bb · **on:** Jun 29, 2018

If the money multiplier is 3.0, a 1,000 increase in the monetary base

A) increases quantity of money by 3,000.
B) decreases the quantity of money by 3 percent.
C) increases the monetary base by 300.
D) increases the money multiplier by 3 percent.
E) decreases quantity of money by 3,000.

Question 2

Any action that gives rise to a demand for foreign currency is a

A) deficit item on the current, financial, or capital account.
B) deficit item on the current account and a surplus item on the financial and capital accounts.
C) surplus item on the current account and a deficit item on the capital and financial accounts.
D) surplus item on the current, financial, or capital account.