Author Question: If the Federal Reserve increases the legal reserve requirement on deposits, a. the money stock ... (Read 95 times)

karen · **on:** Jun 30, 2018

If the Federal Reserve increases the legal reserve requirement on deposits,

a. the money stock will rise and the money multiplier will fall.
b. the monetary base will rise and the money multiplier will fall.
c. both the monetary base and the money stock will fall.
d. neither the monetary base nor the money stock will rise.

Question 2

Which of the following factors have contributed and continue to contribute to long-term economic growth in the U.S.?

(a) Individual rights to vote and popular democracy
(b) Public and private education
(c) Increased labor productivity, capital accumulation
and technological change
(d) All of the above