Author Question: In the money market, if real GDP increases, then the demand for money ________ and the equilibrium ... (Read 103 times)

strangeaffliction · **on:** Jun 29, 2018

In the money market, if real GDP increases, then the demand for money ________ and the equilibrium nominal interest rate ________.

A) decreases; rises
B) decreases; falls
C) increases; falls
D) increases; rises
E) increases; does not change

Question 2

The required reserve ratio is 10 percent and Charlie deposits 3,000 in her checking account. The bank must

A) decrease reserves by 300.
B) decrease reserves by 3,000.
C) increase reserves by 3,000.
D) increase reserves by 300.
E) not change its reserves until Charlie decides to withdraw her funds.