This topic contains a solution. Click here to go to the answer

Author Question: Which of the following combinations would have an indeterminate effect on the size of the money ... (Read 32 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
Which of the following combinations would have an indeterminate effect on the size of the money supply?
 a. an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
  b. an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
  c. a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
  d. none of the above

Question 2

The flat region of the aggregate supply curve reflects the Keynesian belief that:
 a. both inflation and unemployment does not exist.
  b. high growth rate of money supply poses problems in the economy.
  c. unemployment is usually experienced amidst high real GDP.
  d. government intervention in the economy aggravates the problems of inflation and unemployment.
  e. inflation is not a problem when unemployment is high.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

batool

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

a

Answer to Question 2

e





 

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

For a complete list of videos, visit our video library