Author Question: Which of the following best describes aggregate expenditure? a. C + I + G + (X M) b. C + S + G + ... (Read 114 times)

Awilson837 · **on:** Jun 30, 2018

Which of the following best describes aggregate expenditure?
a. C + I + G + (X M)
b. C + S + G + (X M)
c. C + I + G + (X + M)
d. C + I + T + (X M)
e. C + I + T + (X + M)

Question 2

If the required reserve ratio is 20 percent and the Fed buys a 10,000 security from a depository institution that currently has no excess reserves, the money supply:
a. decreases by 10,000.
b. increases by 5,000.
c. decreases by 5,000.
d. increases by 50,000.
e. decreases by 50,000.