Suppose that the reserve ratio is 5%. What is the value of the potential money multiplier?

What would not lead to an overall decrease in demand for air travel in the U.S.?

A) The fear of future terrorist attacks B) News of lengthy security delays at airports C) An expected decrease in airfares D) A substantial increase in bus and passenger train fares

When the money supply rises by 10%, in the short run, output ________ and the price level ________

A) rises; is unchanged B) declines; falls C) is unchanged; falls D) declines; is unchanged