If investment increases by $100 and, as a result, gross domestic product (GDP) ultimately increases by $200, the multiplier equals _____

Destabilizing speculation refers to

A) actions taken by the International Monetary Fund that increase lending to countries who have pegged their currencies against the dollar. B) any depreciation of a country's currency as a result of long-run adjustments to purchasing power parity. C) actions taken by investors who sell a country's currency in anticipation of buying it back later at a lower price. D) actions taken by currency traders to sell a currency that is undervalued.

When the Fed buys government securities in the open market, the money supply ________ because ________

A) decreases; banks lose liquidity, they make fewer loans and checking account deposits decrease B) increases; banks gain liquidity, they make more loans and checking account deposits increase C) increases; banks lose liquidity, they make more loans and checking account deposits increase D) decreases; banks gain liquidity, they make fewer loans and checking account deposits decrease E) none of the above