Exam 13: The Role of Money in the Macro Economy

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What are the three monetary policy tools of the Fed? Briefly describe how each tool can be used to implement an expansionary monetary policy and a contractionary monetary policy.

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In the money market,an excess demand of money will:

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The currency deposit ratio,c,is 0.10.The reserve requirement,rr,is 0.08.The excess reserve ratio,e,is 0.05.What is the size of the money multiplier?

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A goal of contractionary monetary policy is to:

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How many Federal Reserve District Banks are there?

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An increase in the discount rate would:

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Real demand for money is positively related to the level of real income in the economy.

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The monetary base is smaller than the money supply.

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The equilibrium price in the money market is the:

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A system where goods and services are exchanged directly without a common unit of account is called the:

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