When the policy rate hits its lower bound and inflation keeps falling, this portion of the Monetary Policy curve is

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.

Before the Great Depression of the 1930s, the majority of government spending took place at the ________ and after the Great Depression the majority of government spending took place at the ________

A) federal level; state level B) federal level; state and local levels C) state and local levels; federal level D) local level; federal level