Suppose the banks in the Federal Reserve System have $100 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.07, then excess reserves will increase by:

If interest rates rise, what will happen to the nation's exchange rate?

What will be an ideal response?

Expansions of aggregate demand cause the economy to move along what is essentially a vertical aggregate supply curve when

A) wage increases catch up to inflation. B) higher prices can reduce interest rates no further. C) money supply growth rises to equal the rate of aggregate demand expansion. D) from a recession level of output, full employment is reached.