Exam 15: Monetary Theory and Policy

Which of the following changes is most likely to be observed in the money market of a country experiencing a recession?

Which of the following changes will cause a downward movement along the money demand curve?

The equilibrium interest rate in a money market is determined by:

Since the Federal Reserve was established in 1913,the U.S.has experienced three periods of high inflation and each was preceded and accompanied by a period of sharp decline in the money supply​

According to the equation of exchange,if the amount of money in an economy multiplied by the velocity of money equals 800 million dollars,then this economy's:

When calculating how much changes in the money supply will change nominal GDP,we use the money multiplier instead of the spending multiplier.

The figure given below shows equilibrium in a money market.If S is the supply curve,the equilibrium interest rate and quantity of money will be:

When the Fed adopts an expansionary monetary policy:

Which of the following identities describe the equation of exchange?

If the short-run aggregate supply curve is positively sloped and the Fed increases the money supply,aggregate demand:

Which of the following changes is most likely to happen when there is a decrease in the supply of money in a market that was initially in equilibrium?

The Fed uses the federal funds rate to pursue its twin goals of:

In the aggregate demand-aggregate supply model in the short run,a decrease in the money supply is likely to cause a(n):

Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?

If the quantity of money supplied exceeds the quantity of money demanded,at a point in time:

If real output and velocity are stable and predictable,then the equation of exchange can be used to derive a simple relationship between:

The quantity theory of money states that if the velocity of money is stable or at least predictable,then:

Suppose an individual can earn 3 percent interest on an annual term deposit.His opportunity cost of holding $100,000 in cash instead of investing in the term deposit will be:

If the Fed adopts a contractionary monetary policy,eventually we can expect:

In the money market,if the money supply decreases,the opportunity cost of holding money: