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...Principles of macroeconomics fall quiz thursday november th pm please answer the following questions write your answers directly on you can achieve a total points there are multiple choice followed by free response should read all first good luck name mit id number ta class time email table is for corrector use only long question increase in atms decreases currency deposit ratio cu according to keynsian theory sticky prices output increases and interest rate goes down b up c standard lm model an government spending g without changing taxes has positive e ect equilibrium consumption negative ambigous shifts upwards right which makes both higher however nal since depends positively negatively misperception expected money supply neither nor rates consider fractional reserve banking system with legally required m suppose that individual deposits dollars one bank then economy wide change will be at most equal if nobody wants hold banks lend their limit these two assumptions relaxed lower so...