D Question 13 1 pts In the cause-effect process linking the change in the banks\

Question

D Question 13 1 pts In the cause-effect process linking the change in the banks' excess reserves to an eventual change in output in the economy: O a decrease in aggregate demand will increase output. O an increase in the money supply will decrease the rate of interest. O a decrease in excess reserves will increase the money supply O a decrease in the rate of interest will decrease aggregate demand. D Question 14 1 pts The ZIRP (zero interest rate policy) of the Fed led to the "zero lower bound problem", which refers to the problem of: O having a low level of employment with zero new jobs created. O budget deficits that left government with zero ability to spend. O a federal funds interest rate that could not go below zero. O zero real GDP growth because of weak aggregate demand.

Explanation / Answer

Q13 ANSWER IS AN INCREASE IN MONEY SUPPLY WILL DECREASE RATE OF INTEREST

Q14 ZIRP REFERS TO A FEDERAL FUNDS RATE THAT COULD NOT GO BELOW ZERO

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