The smaller the currency drain, the
A) smaller the increase in the quantity of money from an increase in reserves.
B) more likely it is that the banking system will hold a larger proportion of excess reserves.
C) the smaller the effect of a change in the discount rate.
D) larger the increase in the quantity of money from an increase in reserves.
D
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Whenever total planned expenditures differ from real GDP
A) unplanned inventories will remain unchanged. B) government spending will adjust. C) tax revenues will move the economy back to equilibrium. D) unplanned inventories will change.
Which of the following items is NOT part of government expenditure on goods and services in the GDP accounts?
A) gasoline purchases for government car pools B) Social Security expenditures C) new computer hardware for use by the IRS D) drapes to brighten up the president's office