If the money supply is $1 billion, the reserve requirement is 10%, and currency holding $50 million, then reserves are

Which of the following would most likely increase the supply of college textbooks?

a. five major publishers go out of business b. paper costs double c. the wage rate of printers increases d. producers expect the price to rise in the future e. technology of book production improves

If the demand for money is insensitive to the interest rate, then the most effective expansionary policy would be

a. fiscal policy. b. monetary policy. c. neither fiscal nor monetary policy. d. both fiscal and monetary policy.