1_________ is the narrowest monetary aggregate that the Fed reports.

a.

M0

b.

M1

c.

M3

d.

M2

2_

Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the excess reserve ratio = 5%, a decrease in the excess reserve ratio to 0% causes the money multiplier to ________, everything else held constant.

a.

increase from 1.67 to 1.82

b.

decrease from 2.55 to 2.33

c.

increase from 2.33 to 2.55

d.

decrease from 1.82 to 1.67

3_

A person's house is part of her

a.

income.

b.

wealth.

c.

money.

d.

liabilities.

4_

________ policy involves decisions about government spending and taxation.

a.

Fiscal

b.

Monetary

c.

Financial

d.

Systemic

5_

When stock prices fall

a.

an individual's wealth may decrease but their willingness to spend is not affected.

b.

an individual's wealth may decrease and their willingness to spend may decrease.

c.

a business firm will be more likely to sell stock to finance investment spending.

d.

an individual's wealth is not affected nor is their willingness to spend.