If banks are reluctant to lend to business firms, the money multiplier will be

A.larger.

B.smaller.

C.either unchanged or larger.

D.unchanged

Outside the US, US dollar is held by

A.Illegal entities.

B.Most central banks.

C.People trading with or traveling to the US.

D.All of the above.

Keynes prefers the use of fiscal policy to raise output, partly because the effect of an expansionary monetary policy depends on

A.Banks' willingness to make loans.

B.Firms' willingness to invest.

C.All of the above.

D.None of the above.