An increase in the required reserve ratio, say from 10 to 12 ...

[piesebel]

An increase in the required reserve ratio, say from 10 to 12 percent would:
 a. decrease the money supply by a substantial amount.
  b. decrease the money supply by a small amount.
 c. increase the money supply by a substantial amount.
  d. increase the money supply by a small amount.

Question 2

According to the theory of rational expectations, the economy always remains at the natural rate of unemployment, irrespective of policy changes.
 a. True
  b. False
  Indicate whether the statement is true or false

[JYan]

Answer to Question 1

a

Answer to Question 2

False

[piesebel]

Thanks for the timely response, appreciate it

[Liddy]

TYSM