Assuming a banking system with limited reserves, which of the following will most likely happen if a country's government decreases its spending and the central bank increases the money supply? An increase in unemployment and an appreciation of the currency. 她 A C D E An increase interest rates and a decrease in aggregate supply A decrease in interest rates and an increase. investment spending A depreciation of the currency and an increase in imports An increase in aggregate demand and unemployment

The U.S. monetary policy is conducted to achieve two goals of price stability and fullemployment output. In the short run, monetary policy can influence economic activity through the monetary transmission mechanism. Which of the following is false?a. Monetary expansion tends to encourage consumption by lowering the interest  rate. b. Monetary expansion tends to encourage investment by lowering the interest  rate. c. Monetary expansion tends to lead to appreciation of the domestic currency,  which encourages the foreign imports.d. Monetary contraction leads to lower asset prices, which tends to discourage  investment.e. All of the above are correct

1. When the banking industry in aggregate has a higher reserve ratio than the required reserve ratio, the: A. greater the money multiplier. B. more money will be created. C. smaller the money multiplier. D. greater the level of required reserves. 2. If I took cash from my mattress/sock drawer/or some other place and deposit $100 in my local bank, this can lead to a maximum expansion in bank deposits of $500. Using the simple money multiplier formula, the required reserve ratio must be: A. 20 percent. B. 25 percent. C. 40 percent. D. 50 percent. 3. If you personally knew in 2020 that interest rates would jump from 2% to nearly 7% in 2022, you would want to be holding: A. more money because bond pries will likely fall. B. less money because bond pries will likely rise. C. more money because bond pries will likely rise. D. more money because bond pries will stay the same due to fed policy. 4.In 2008 the Federal Reserve decreases the reserve requirement as part of the stimulus, it: A.…

In the short run, if the central bank decreases the money supply, the currency will and output will O appreciate; rise O appreciate; fall O depreciate; rise O depreciate; fall