According to the classical model, total employment will increase when
a. the birth rate increases
b. the government creates more jobs
c. the labor force increases
d. individuals receive more education
e. there is a recession
C
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Comparing the effect on the monetary base between an open market purchase of government securities from a bank and the same open market operation conducted with the general public, the monetary base
A) decreases by the same amount if the general public sells the securities or if a bank sells the securities. B) does not change if it is the general public that sells the securities. C) increases by a larger amount if a bank sells the securities than if the general public sells the securities. D) increases by a larger amount if the general public sells the securities than if a bank sells the securities. E) increases by the same amount if the general public sells the securities or if a bank sells the securities.
The minimum amount of reserves a bank is required to hold is known as
A. Total reserves. B. Required reserve ratio. C. Excess reserves. D. The money multiplier.