A decrease in monetary base ________ the quantity of money, the interest rate ________, and the quantity of money demanded ________

The equation of exchange is a formula indicating that the number of monetary units times

A) the number of times each monetary unit is spent on final goods and services is identical to the price level times real GDP. B) real GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services. C) nominal GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services. D) the price level is identical to the number of times each monetary unit is spent on final goods and services times real GDP.

To increase the money supply using the reserve requirements, what would the Fed typically do?

A) let each bank get more currency from the Treasury B) make each bank set its own reserve levels C) reduce the reserve requirement for banks D) increase the reserve requirement for banks