Real-world accuracy of the money multiplier can be affected by:
a. the amount of loans provided by nonbanks.
b. the way the public divides its holding of M1 between currency and certificates of deposit.
c. the willingness of banks to loan excess reserves.
d. all of these.
d
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You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. Before taxes, you experienced
a. both a nominal gain and a real gain, and you paid taxes on the nominal gain. b. both a nominal gain and a real gain, and you paid taxes only on the real gain. c. a nominal gain, but no real gain, and you paid taxes on the nominal gain. d. a nominal gain, but no real gain, and you paid no taxes on the transaction.
Government efforts to use taxes and government spending to help stabilize the economy are called ______.
a. regulatory laws b. exchange rates c. fiscal policies d. income guidelines