Which of the following combinations would have an indeterminate effect on the size of the money supply?
a. an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
b. an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
c. a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
d. none of the above
a
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Technological change and labor productivity are negatively related
a. True b. False Indicate whether the statement is true or false
One reason that deadweight losses are so difficult to avoid is that
a. taxes affect the decisions that people make. b. income taxes are not paid by everyone. c. consumption taxes must be universally applied to all commodities. d. the administrative burden is hard to calculate.