If the central bank uses monetary policy to increase the ____________ rate, then commercial banks will reduce their borrowing of reserves from the Fed.

________ is the total value of final goods and services produced within the borders of a country, using market prices from a specific base year to determine the value of each unit that is produced

A) Real gross domestic product B) Gross national product C) Total product D) Nominal gross domestic product A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP.

If the consumption function is defined as C = 7,250 + 0.8Y, what is the value of the multiplier?

A) 0.2 B) 0.8 C) 1.25 D) 5