Many government programs, such as unemployment compensation, operate on a deficit during recessions and a surplus during periods of economic expansion. The programs are referred to as

Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?

i. changing the discount rate ii. conducting open market operations iii. changing the required reserve ratio A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii

If the required reserve ratio is increased from .1 to .2, the demand deposit expansion multiplier

A) increases from 10 to 5. B) increases from 4 to 4.5. C) decreases from 5 to 2.5. D) decreases from 10 to 5.