An increase in the excess reserves banks want to hold, together ...

[Kthamas]

An increase in the excess reserves banks want to hold, together with people taking currency out of their demand deposit accounts, would:
 a. increase the money supply.
 b. decrease the money supply.
 c. leave the money supply unchanged.
 d. have an indeterminate effect on the money supply.

Question 2

The new Keynesian economists believed that:
 a. wages and prices are flexible in the short run.
  b. wages are flexible but prices are not flexible in the long run.
  c. wages are not flexible but prices are flexible in the short run.
  d. wages and prices are not flexible in the short run.
  e. wages and prices are not flexible in the long run.

[Li Jun]

Answer to Question 1

b

Answer to Question 2

d

[Kthamas]

TYSM

[scottmt]

Gracias!