As reserve requirement increases money creation increase

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Reference no: EM13796413

TRUE OR FALSE QUIZ

1. As reserve requirement increases, money creation increase.

2. The money value and price level are in inverse relation.

3. The nominal interest rate is related to inflation.

4. An inflation tax is tax put onto inflation.

5. Government expenditure belongs to the aggregate supply.

6. 1973-1975 recession is due to aggregate demand shift.

7. 2001 recession is due to aggregate demand shift.

8. As potential GDP is smaller than actual GDP, recession occurs.

9. A money supply results in shift of aggregate supply GDP.

10. The multiplier effect depends on marginal propensity to consume.

Reference no: EM13796413

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