According to traditional Keynesian analysis, a tax cut has a larger effect on aggregate demand than an increase in government expenditures of the same size

In making your decision whether to take a trip during spring break, you compare all the other activities you could undertake. As a result, you

A) are not making a rational choice. B) must have made a choice in the social interest. C) limit the cost and the benefits you can gain. D) are making a choice on the margin. E) do not face an opportunity cost.

The Fed buys $25,000 of government securities. The desired reserve ratio is 20 percent and the currency drain ratio is zero. What will be the change in the quantity of money?

A) $5,000 B) $20,000 C) $25,000 D) $125,000 E) $50,000