Exam 15: Monetary Theory and Policy

Which of the following would cause an increase in the velocity of money?

A rising rate of inflation:

Which one of these statements is correct?

The demand for money will be high in an economy experiencing:

Which of these is a flow variable?

In the long run,an increase in aggregate demand:

An increase in the nominal interest rate,other things constant,will:

Which of the following changes will shift the money demand rightward?

The opportunity cost of holding money is measured by the:

The behavior of the M1 velocity of money in recent years can be explained by:

Identify the correct statement about changes in money supply.

The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.Which of the following policies will allow the Fed to close the GDP gap in the long run?

Other things constant,an increase in the real GDP of a country will:

The demand for money is based primarily on money's role as a(n):

In the long run,a change in the money supply does not affect the natural rate of unemployment because:

Other things constant,if the interest rate rises,people prefer to hold:

The demand for money in an economy is high when the:

The demand curve for investment depicts:

In the aggregate demand-aggregate supply model in the short run,an increase in the money supply will lead to a(n):

An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is: