The money multiplier is used to determine how much the
A) quantity of money increases when the monetary base increases.
B) monetary base increases when the quantity of money increases.
C) monetary base increases when the Fed purchases government securities.
D) monetary base increases when the Fed sells government securities.
E) quantity of money increases when the required reserve ratio increases.
A
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According to the quantity theory of money:
A) when the gap between the growth rate of money supply and the growth rate of real GDP widens, inflation decreases. B) when the gap between the growth rate of money supply and the growth rate of real GDP widens, inflation increases. C) when the gap between the growth rate of money supply and the growth rate of real GDP widens, nominal interest rates decrease. D) when the gap between the growth rate of money supply and the growth rate of real GDP widens, real interest rates increase.
The "equality of opportunity" idea of fairness claims
A) a society should make the poorest as well off as possible. B) the results and the rules should both be fair. C) it's not fair if the rules aren't fair. D) private property can be transferred under government order. E) only a first-come, first-served system of allocating resources is fair.