Assume that the current one-year rate is 5 and the two-year rate ...

[corkyiscool3328]

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

[Jevvish]

Answer to Question 1

D

Answer to Question 2

E

[corkyiscool3328]

Excellent

[TheNamesImani]

Gracias!