What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the Canadian dollar:euro foreign exchange market and the Canadian central bank intervenes to offset the excess? Assume the M2 money multiplier is 3.
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars.
b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars.
c. The Canadian M2 money supply might fall or rise.
d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars.
e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars.
Question 2
The major source of surplus value is:
a. Capitalist philanthropy
b. Labor
c. Spontaneous order
d. Monopoly
e. Above Subsistence wages
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