The slope of the LM curve will be steeper the __________ is the income-sensitivity of the demand for money and the __________ is the interest-sensitivity of the demand for money

All of the following make the use of fiscal policy less attractive EXCEPT

A) expansionary fiscal policy tends to cause inflation and offsets some of the increased consumer spending. B) that it cannot be effective, unless it is accommodated with expansionary monetary policy. C) the substantial margin of error in the value of the multiplier. D) the legislative lag, which is the time it takes for Congress and the President to pass and implement the measure. E) the crowding out effect, which is the decrease in private spending that occurs due to increased government spending.

According to the bank reserve equation, the largest factor supplying reserves to the banking system is

A) Federal Reserve purchases of government securities. B) Treasury currency outstanding. C) float. D) currency in circulation.