If M = the quantity of money, m, the money multiplier, MB, the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR = required reserves, and ER = Excess reserves, then C + R would equal:

The demand for durable goods

A) declines by a greater percentage than does GDP during a recession. B) declines by a smaller percentage than does GDP during a recession. C) rises by a greater percentage than does GDP during a recession. D) has decreased over time.

An increase in the money supply will cause the nominal interest rate to ________ and the quantity of money to ________

A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease