10 Homework . Unanswered . Due Mar 17th, 11:59 PM Assuming banks have little or no excess reserves, if the Federal Reserve decreases the required reserve ratio, what will likely happen to the M1 money supply? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a It will fall b It will not change C It will rise d It may rise or fall11 @ Homework Unanswered DueMarl?th,11:59PM Choose the correct sequence of events that might bring an economy to full employment if it is currently at a level of real GDP below the potential level of GDP. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a price level goes up, lowering wages and increasing output b price level goes up, increasing wages as well as output c wages rise, increasing prices and decreasing output d wages fall, decreasing prices and increasing output 12 @ Homework Unanswered DueMarli'th, 11:59 PM A rise in productivity will result in Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Higher prices and lower output as the aggregate demand curve shifts left b Lower prices and higher output as the aggregate demand curve shifts left c Lower prices and higher output as the aggregate supply curve shifts right d Higher prices and lower output as the aggregate supply curve shifts left 13 @ Homework I Unanswered 0 Due Marl?th,11:59 PM All else equal, investment spending tends to if interest rates Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Increases, decrease b Decrease, increase c All ofthe above 16 @ Homework Unanswered DueMarthh,1l:59PM Suppose AE = 20 - 500r + 0.5V, potential output is 40 and current r : 0.02, then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Output is at its potential b There is a negative output gap of 20 c There is a negative output gap of 10 d The mpc will fall