It\'s extremely imperative I get the correct answer on these questions, which wi

Question

It's extremely imperative I get the correct answer on these questions, which will help me learn the material for an upcoming exam. Please try to answer these questions correctly!

1. Other things remaining the same, the smaller the currency-deposit ratio,
a. The larger the reserve ratio
b. The smaller the reserve ratio
c. The larger the money multiplier
d. The smaller the money multiplier
e. The larger the monetary base

2. Given the Keynesian AS-curve, expansionary monetary policy will
a. Increase the level of output but leave the price level unchanged
b. Increase the price level but leave the level of output unchanged
c. Increase both the level of output and the price level
d. Leave the level of output and the price level unchanged
e. Increase the level of output but decrease the price level

3. The liquidity of an asset is determined by
a. The central bank
b. The cost of keeping it in a safe place
c. Its potential value to the buyer
d. The cost, convenience, and speed with which it can be converted into money
e. How frequently it turns over in trade during the year

4. Okun's law states that one extra percentage point in unemployment causes
a. Real GDP to fall by about 2 percent
b. Real GDP to fall by about 0.5 percent
c. The rate of inflation to decline by about 2 percent
d. The rate of inflation to decline by about 0.5 percent
e. Both GDP and the rate of inflation to decline by about 2 percent

5. In the AS-AD model, a shift of the AD-curve to the left can be caused by

a. A decrease in taxes
b. An increase in business and consumer confidence
c. An increase in nominal money supply
d. A decrease in government transfer payments
e. A decrease in money demand

Explanation / Answer

1.c 2.c 3.d 4.a 5.a

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