By how much does the monetary base change when the government decides to increase government spending by 5% (assume flexible exchange rates)?
a. There is not enough information given to tell.
b. The monetary base does not change at all.
c. The monetary base falls by 5%
d. The monetary base rises by 5%
.B
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The following table contains data for the U.S. balance of payments in a prior year. Answer the question on the basis of this information. All figures are in billions of dollars.
U.S. goods exports +$793 U.S. goods imports -1573 U.S. exports of service +280 U.S. imports of services -222 Net investment income +5 Net transfers -81 Capital account -5 Foreign purchases of assets in the U.S. +1198 U.S. purchases of foreign assets -395 By how much did Americans forgive debt owed to them by foreigners than foreigners forgave debt owed to them by Americans? A. +$5 billion B. -$5 billion C. +$72 billion D. -$72 billion