A reserve requirement of 10% implies a money multiplier of 10 and a reserve requirement of 15% implies a money multiplier of 15

According to this Application, one strategy proposed to deal with the rising expenses of government entitlement programs is for the government to save and invest now so as to reduce the burden on future generations. This strategy would

A) not change GDP, but shrink entitlement programs. B) increase GDP and eliminate entitlement programs. C) increase GDP, and entitlement programs would increase along with GDP. D) increase GDP and entitlement programs would decrease.

If bonds with different maturities are perfect substitutes, then the ________ on these bonds must be equal

A) expected return B) surprise return C) surplus return D) excess return