According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only.
b. will shift the aggregate demand schedule only.
c. will shift both the aggregate demand and aggregate supply schedules.
d. None of the above
B
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In a market undergoing technological change, firms that
A) adopt the new technology temporarily incur an economic loss. B) adopt the new technology temporarily make an economic profit. C) do not adopt the new technology temporarily make an economic profit. D) do not adopt the new technology increase their market share. E) do not adopt the new technology continue to make a normal profit.
The currency deposit ratio, c, is 0.10. The reserve requirement, rr, is 0.08. The excess reserve ratio, e, is 0.05. What is the size of the money multiplier?
A) 4.70 B) 4.78 C) 4.75 D) 4.00