The money supply changes due to: a. Rising velocity. b. Rising ...

[vicotolentino]

The money supply changes due to:
 a. Rising velocity.
  b. Rising oil and other natural resource prices.
  c. Rising GDP.
  d. Rising money multiplier.
  e. A depreciating currency.

Question 2

Suppose a national government increased spending by 100 billion. The net effect on the banking system would be to:
 a. Reduce bank reserves by 100 billion and reduce bank deposits by 100 billion.
  b. Increase bank reserves by 100 billion and increase bank deposits by 100 billion.
  c. Decrease government checking accounts in the banking system by 100 billion and increase the public's checking accounts there by 100 billion.
  d. Increase government checking accounts in the banking system by 100 billion and reduce the public's checking accounts there by 100 billion.
  e. Increase government checking accounts in the banking system by 100 billion and increase the public's checking accounts there by 100 billion.

[leahm14]

Answer to Question 1

.D

Answer to Question 2

.C