If banks and the private sector decide to hold less cash the money multiplier will be ?
A. Unchanged
B. Larger
C. Smaller
D. Unstable
A. reduction, increase
B. reduction, reduction
C. increase, reduction
D. increase , increase
Central banks prefer to fix the ____ and accept the resulting _____?
A. demand for money, interest rate
B. interest rate equilibrium money supply
C. demand for money equilibrium money supply
D. interest rate, demand for money
A. lender of less resort
B. financial intermediation
C. Open Market operations
D. Financial regulation
M4 is a __________ measure of money and includes deposits at both __________ and _________?
A. narrow, banks, building societies
B. wide, banks insurance companies
C. Narrow, banks insurance companies
D. Wide, banks building societies
When interest rate rise, other things equal, we can expect the quantity of real money holding to ?
A. fall
B. increase
C. not change
D. None of these