How much does the money supply change if the reserve requirement rate is 20% and excess reserves are $5 million?

The liquidity effect indicates that expansionary monetary policy causes

A) interest rates to fall. B) interest rates to rise. C) bond prices to fall. D) inflation.

The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________

A) rapid intervention by the central bank averted economic catastrophe B) the increase in tech-stock prices was driven by the economic fundamental of technological progress C) the technology sector is a rather small portion of the aggregate economy D) tech-stock prices had not been much influenced by credit availability