Author Question: Assume that the current one-year rate is 5 and the two-year rate is 7. Given this information, the ... (Read 52 times)

corkyiscool3328 · **on:** Jun 30, 2018

Assume that the current one-year rate is 5 and the two-year rate is 7. Given this information, the one-year rate expected one year from now is

A) 5.
B) 6.
C) 7.
D) 9.
E) 12.

Question 2

Which of the following will cause the money multiplier to become smaller?

A) an increase in high powered money
B) a decrease in the ratio of reserves to checkable deposits
C) an increase in the public's preference for checking deposits as opposed to holding currency
D) a reduction in high powered money
E) none of the above