4. An increase in income will cause:

Select one:

a.

a decrease in the supply of reserves.

b.

an increase in the demand for currency.

c.

an increase in the supply of central bank money.

d.

a decrease in the demand for currency.

e.

an increase in the supply of reserves.

5.

Suppose there is a simultaneous tax increase and open market sale of bonds. Which of the following must occur as a result of this?

Select one:

a.

Output increases.

b.

Output decreases.

c.

The interest rate increases.

d.

The interest rate decreases.

e.

Both output and the interest rate increase.

6.

A decrease in the reserve ratio, , will cause:

Select one:

a.

A decrease in reserves.

b.

An increase in the monetary base.

c.

An increase in the money multiplier.

d.

A decrease in the monetary base.

e.

A decrease in the money multiplier.

Answer correctly please. I will rate accordingly with multiple votes. This is my last attempt. Explain your answer. Answer only if 100% sure.