Open-Market Operations Change

question 137

Multiple Choice

Open-market operations change:

• A)the size of the monetary multiplier, but not chartered bank reserves.
• B)chartered bank reserves, but not the size of the monetary multiplier.
• C)neither chartered bank reserves nor the size of the monetary multiplier.
• D)both chartered bank reserves and the size of the monetary multiplier.

---

Definitions:

Per Capita GDP

The gross domestic product of a country divided by its population, giving an average economic output per person.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in a specific period accounting for changes in price level.

Trade Deficits

A situation where a country's imports of goods and services exceed its exports, resulting in a net outflow of domestic currency to foreign markets.

Real GDP

Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a given year in base-year prices.