If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the M1 money multiplier is

If aggregate demand increases in the intermediate range of the aggregate supply curve then the:

a. price level rises and real GDP falls. b. price level rises and real GDP rises. c. price level falls and real GDP falls. d. price level falls and real GDP rises.

A decrease in the money supply might indicate that the Fed had

a. purchased bonds in an attempt to increase the federal funds rate. b. purchased bonds in an attempt to reduce the federal funds rate. c. sold bonds in an attempt to increase the federal funds rate. d. sold bonds in an attempt to reduce the federal funds rate.