Part I - Mercats financers: diner, bancs i políti… · Introducció a la Macroeconomia UPF 2021

d. Identify the correct macroeconomic relationship:

Solución: 4. A reduction in household disposable income decreases nominal money demand.

g. Which of the following changes reduces the money multiplier?

Solución: 2. An increase in commercial banks' reserve-to-deposit ratio.

h. What constitutes high-powered money (also known as the monetary base or central bank money)?

Solución: 2. Currency in circulation plus commercial bank reserves held at the central bank.