1. We argued that the currency to deposit ratio (C/D) and the excess reserve to deposit ratio (ER/D) both fell during the Great Depression causing the money multiplier to fall and along with it, the money supply. True or Flase 2. If inflation is higher than expected, then firms have an incentive to hire more workers since real wages would be lower than expected. True or False 3. In the short-run with "sticky" wages, unanticipated inflation generally benefits workers more than firms. True or False

1. We argued that the currency to deposit ratio (C/D) and the excess reserve to deposit ratio (ER/D) both fell during the Great Depression causing the money multiplier to fall and along with it, the money supply. True or Flase 2. If inflation is higher than expected, then firms have an incentive to hire more workers since real wages would be lower than expected. True or False 3. In the short-run with "sticky" wages, unanticipated inflation generally benefits workers more than firms. True or False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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