Kristine has a savings account at a bank. If the nominal interest rate she earns exceeds the rate of inflation, then her purchasing power increases over time

If, during a deposit expansion, not all money gets redeposited into the banking system and some leaks out as currency, then the real world multiplier is

A) not related to 1/RR. B) smaller than 1/RR. C) equal to 1/RR. D) larger than 1/RR.

Suppose the money market is in the liquidity trap and the Fed increases the supply of money. Individuals would rather hold __________ than __________ because they expect that bond prices can go no __________

A) bonds; money; higher B) bonds; money; lower C) money; bonds; higher D) money; bonds; lower