When the expected inflation rate increases, the demand for bonds ________, the supply of bonds ________, and the interest rate ________, everything else held constant

Which of the following would reduce the money multiplier?

A) bank reductions in desired reserve holdings B) reducing the reserve ratio C) cash drains from banks D) bond purchases by the Fed

In the monetary small open-economy model with a fixed exchange rate, the domestic

A) government loses control over the level of domestic government spending. B) government loses control over the level of domestic taxes. C) government loses control over the level of domestic government spending and domestic taxes. D) central bank loses control over the domestic stock of money.