Medicaid, welfare payments, and Temporary Assistance to Needy Families are classified as

The AD curve will shift when there is a change in:

A. the inflation rate or the money growth rate. B. the money growth rate or the velocity growth rate. C. the real growth rate or the inflation rate. D. the velocity growth rate or the real growth rate.

Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, a decrease in the required reserve ratio to 5% causes the M1 money multiplier to ________, everything else held constant

A) increase from 2.8 to 3.11 B) decrease from 3.11 to 2.8 C) increase from 2 to 2.22 D) decrease from 2.22 to 2