How are interest rates determined in the Keynesian model?
A. money supply, interest rates, government spending, supply, price and output
B. money supply, interest rates, investment, demand, price and output
C. money supply, savings, consumption, demand, price and output
Ans: B. money supply, interest rates, investment, demand, price and output
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If the required reserve ratio is 15 percent, there is no currency drain, and banks loan all of their excess reserves, an increase in the monetary base of $20,000 leads to a total increase in the quantity of money of
A) $200,000. B) $133,333. C) $3,000. D) $20,000. E) $300,000.
An important difference between offering prospectus in a public bond issue and the offering memorandum in a private placement is
A) all relevant factual information about the firm and its financing is required in the prospectus but not in the offering memorandum. B) evidence of due diligence is required in the offering memorandum but not in the prospectus. C) the prospectus may not contain any projections about the company's future while an offering memorandum has no such restriction. D) There are no differences between these two documents.