When the Fed wants to expand the money supply through open market operations, it:
a. sells government securities

Monetarists argue that the interest elasticity of the demand for money is

a. low, while Keynesians say it is high. b. important in terms of affecting economic activity. c. highly variable. d. an important factor in determining if velocity is stable or unstable.

Since 1945, national defense expenditures as a percentage of GDP have _____

a. fallen from 41 percent to 3.7 percent b. fallen from 32.1 percent to 20.1 percent c. fallen from 62.3 percent to 11.5 percent d. fallen from 50.5 percent to 9.6 percent