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Author Question: A decrease in savings deposits would ____ M1 and ____ M2. a. increase; increase. b. not change; ... (Read 96 times)

tsand2

  • Hero Member
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  • Posts: 520
on: Jun 30, 2018
A decrease in savings deposits would ____ M1 and ____ M2.
 a. increase; increase.
 b. not change; increase.
  c. decrease; decrease.
 d. not change; decrease.

Question 2

The dramatic reduction of the money supply during the 1930s was responsible for the Great Depression. The macroeconomy is intrinsically stable if left alone by the prying hand of government. The Federal Reserve Board, instead of tightening money during booms and loosening money during recessions (policies that are ineffective due to time lags), should simply increase the supply of money at a steady rate of 3 to 5 percent per year.. This statement reflects which school of thought?
 a. The traditional Keynesians
  b. The monetarists
  c. The traditional classicals
  d. The new Keynesians
  e. The new classicals


mistyjohnson

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

b


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