Author Question: Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the ... (Read 93 times)

washai · **on:** Jun 29, 2018

Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the multiplier ________.

A) further increases; greater than one
B) further increases; unnecessary
C) further increases; less than one
D) a decrease; less than one
E) a decrease; greater than one

Question 2

A new bank has reserves of 600,000, checkable deposits of 500,000, and government securities of 100,000. If the desired reserve ratio is 10 percent, the amount of loans this bank can make is

A) 60,000. B) 550,000. C) 50,000. D) 600,000. E) 540,000.