By raising the discount rate, the Federal Reserve ________ banks from borrowing more reserves

Checking account balances are included in

A) M1 only. B) M2 only. C) both M1 and M2. D) neither M1 nor M2.

One problem with real business cycle theory is that

A) it is more successful in explaining expansions than in explaining contractions. B) it relies almost entirely on Keynes' original ideas, ignoring much of the progress made since then. C) it treats government officials as well-meaning public servants, despite much evidence to the contrary. D) it defines "productivity" in a new and not very intuitive way. E) its models downplay the importance of technological progress in the economy.