) A decrease in the reserve requirement ________excess bank reserves and ________ the money supply. Answers:decreases; decreases A.) increases;…

1.) A decrease in the reserve requirement ________excess bank reserves and ________ the money supply.

Answers:decreases; decreases

A.) increases; decreases

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

B.) decreases; increases

C.) increases; increases

2.) Assume growth in velocity is equal to zero and potential (trend) real GDP grows at rate of 2% per year in the long-run.

If the central bank decided to keep the money supply constant, (growth rate = 0), then

A.) the economy would experience deflation of 2% per year.

B.) the economy would experience inflation of 2% per year.

C.) there would be no inflation or deflation.

3.)

In 2009,

real GDP growth = -2.8%

inflation = 0.8%

growth in M2 = 8.1%

Calculate growth in velocity.  Answer as a percent, round to one decimal place and do not enter a “%” sign.



"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!":

Get started