If the required reserve ratio is 5 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is

A trade-off refers to

A) sacrificing one thing for another. B) deciding who consumes the products produced in an economy. C) allowing the government and other organizations to choose for us. D) holding other variables fixed.

According to economists who support passive policymaking

A) expansionary policies can reduce unemployment without increasing the price level. B) policies that attempt to exploit the Phillips curve trade-off will eventually become ineffective for reducing unemployment. C) there is no difference between the effect of an anticipated change in aggregate demand and the effect of an unanticipated change in aggregate demand of an identical amount. D) workers always consider a change in nominal wages to be a change in real wages.