Which of the following will increase the money supply?
A) an increase in the discount rate (relative to the federal funds rate)
B) a decrease in the required reserve ratio
C) an open market sale by the Fed
D) a and c
E) b and c
B
Economics
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DSGE models are
A) similar to RBC models but allow for shocks other than productivity shocks. B) similar to RBC models, but government spending shocks play a major role. C) similar to Keynesian models except in the long run. D) similar to Keynesian models except in the short run.
Economics
If the simple spending multiplier is 8, the marginal propensity to consume is _____
a. 1/8 b. 1/4 c. 4/5 d. 7/8 e. 8
Economics