i. suppose national saving is $100b, the government deficit is$15b, and the gross investment is $130

i. suppose national saving is $100b, the government deficit is$15b, and the gross investment is $130b. foreign financing is: a. $30b or less b. more than $30b but not more than $40b c. more than $40b but not more than $50b d. more than $50b ii. the bank of Canada can pay for its bond purchase simply bycrediting the amount of its purchase to the account of the bankinvolved in the transaction. as a result: a. bank reserve ultimately increases by this amount times themoney multiplier b. bank reserve ultimately decreases by this amount times themoney multiplier c. the money supplies ultimately increase by this amount timesthe money multiplier a. the money supplies ultimately decrease by this amount timesthe money multiplier iii. monetarists were convinced that business cycle could besmoothed away simply by requiring the federal reserve to: a. keep the money supply constant. b. increase money supply growth in recessions and decrease it inbooms. c. increase money supply growth in booms and decrease it duringrecessions. d. increases the money supply at the same rate during booms andrecessions. . . .

 

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