Author Question: The money multiplier is the A) fraction of the monetary base that is kept in currency. B) number ... (Read 70 times)

torybrooks

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The money multiplier is the
 
  A) fraction of the monetary base that is kept in currency.
  B) number of times that the Fed conducts open market operations in a month.
  C) factor by which a change in the monetary base is multiplied to give the change in the quantity of money.
  D) factor by which a change in the deposits base is multiplied to give the change in the monetary base.
  E) proportion by which a change in the quantity of money changes the monetary base.

Question 2

In the first quarter of 2009, the United States trade deficit fell to its lowest level in a decade. This means that
 
  A) the United States imported more from the rest of the world than it exported to the rest of the world.
  B) foreign countries exported more to the United States than they imported from the rest of the world.
  C) foreign countries imported more from the United States than they exported to the United States.
  D) the United States exported more to foreign countries than it imported from the rest of the world.



todom5090

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Answer to Question 1

C

Answer to Question 2

A



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