The right to openly support and democratically select national leaders is

Suppose the required reserve ratio was 10% and then it increased to 20%. This would

a) result in a drop in the money multiplier from 10 to 5. b) increase the amount of excess reserves available. c) result in an increase in the money multiplier from 5 to 10. d) have no impact on the money multiplier.

Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the current international transactions balance and the monetary base in the context of the Three-Sector-Model? a. The current

international transactions balance becomes more positive (or less negative) and monetary base rises. b. The current international transactions balance becomes more negative (or less positive) and monetary base falls. c. The current international transactions balance becomes more positive (or less negative) and monetary base falls. d. The current international transactions balance and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.