If increases in government spending lead to inflation, the value of the multiplier is reduced

________ increases the size of the money multiplier

A) An open market sale of government securities by the Fed B) An increase in the currency drain ratio C) A reduction in the desired reserve ratio D) An open market purchase of government securities by the Fed E) An increase in the size of open market operations

The curve shown in the figure above is the

A) potential GDP curve. B) Phillips curve. C) aggregate supply curve. D) demand for money curve. E) aggregate demand curve.