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Author Question: Which of the following combinations would have an indeterminate effect on the size of the money ... (Read 58 times)

Metfan725

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on: Jun 30, 2018
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.


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batool

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

a

Answer to Question 2

e


Metfan725

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Reply #2 on: Jun 30, 2018
Thank you :)


batool

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Reply #3 on: Jun 30, 2018
Happy to help you


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