Question 1

According to liquidity preference theory,as real income increases,so does ________.

Accepted Answer

A) the supply of real money balances 
B) the demand for real money balances 
C) the real interest rate 
D) all of the above 
E) none of the above 
A) the supply of real money balances 
B) the demand for real money balances 
C) the real interest rate 
D) all of the above 
E) none of the above

Question 2

Demand for real money balances depends on ________.

Accepted Answer

A) the price level 
B) the real interest rate 
C) the opportunity cost of holding money 
D) all of the above 
E) none of the above 
A) the price level 
B) the real interest rate 
C) the opportunity cost of holding money 
D) all of the above 
E) none of the above

Question 3

If the Federal Reserve raises interest rates in an autonomous tightening ________.

Accepted Answer

A) the MP curve shifts up,there is an upward movement along the IS curve,and the AD curve shifts to the left to a lower level of equilibrium output 
B) the MP curve shifts down,there is a downward movement along the IS curve and the AD curve shifts to the right to a higher level of equilibrium output 
C) the MP curve shifts up,there is a downward movement along the IS curve and the AD curve shifts to the right to a lower level of equilibrium output 
D) the MP curve shifts down,there is an upward movement along the IS curve and the AD curve shifts to the left to a higher level of equilibrium output 
E) none of the above 
A) the MP curve shifts up,there is an upward movement along the IS curve,and the AD curve shifts to the left to a lower level of equilibrium output 
B) the MP curve shifts down,there is a downward movement along the IS curve and the AD curve shifts to the right to a higher level of equilibrium output 
C) the MP curve shifts up,there is a downward movement along the IS curve and the AD curve shifts to the right to a lower level of equilibrium output 
D) the MP curve shifts down,there is an upward movement along the IS curve and the AD curve shifts to the left to a higher level of equilibrium output 
E) none of the above

Question 4

As the financial crisis became more severe in 2008,the Federal Reserve undertook a(n)________ of monetary policy,an effect of which is to ________ inflation.

Accepted Answer

A) contraction;raise 
B) easing;raise 
C) contraction;lower 
D) easing;lower 
E) none of the above 
A) contraction;raise 
B) easing;raise 
C) contraction;lower 
D) easing;lower 
E) none of the above

Question 5

If your local bank buys a few billion dollars worth of government securities,what happens to the economy's money supply?

Accepted Answer

If the seller of the bonds is another pr

Question 6

Factors that shift the AD Curve include ________.

Accepted Answer

A) government purchases 
B) autonomous investment 
C) taxes 
D) all of the above 
E) none of the above 
A) government purchases 
B) autonomous investment 
C) taxes 
D) all of the above 
E) none of the above

According to liquidity preference theory,as real income increases,so does ________.

Demand for real money balances depends on ________.

If the Federal Reserve raises interest rates in an autonomous tightening ________.

As the financial crisis became more severe in 2008,the Federal Reserve undertook a(n) of monetary policy,an effect of which is to inflation.

If your local bank buys a few billion dollars worth of government securities,what happens to the economy's money supply?

Factors that shift the AD Curve include ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

Exam 10: Monetary Policy and Aggregate Demand

According to liquidity preference theory,as real income increases,so does ________.

Demand for real money balances depends on ________.

If the Federal Reserve raises interest rates in an autonomous tightening ________.

As the financial crisis became more severe in 2008,the Federal Reserve undertook a(n)________ of monetary policy,an effect of which is to ________ inflation.

If your local bank buys a few billion dollars worth of government securities,what happens to the economy's money supply?

Factors that shift the AD Curve include ________.

The Policy and Practice of Macroeconomics

Measuring Macroeconomic Data

Aggregate Production and Productivity

Saving and Investment in Closed and Open Economies

Money and Inflation

The Sources of Growth and the Solow Model

Drivers of Growth: Technology, policy, and Institutions

Business Cycles: an Introduction

The Is Curve

Aggregate Supply and the Phillips Curve

The Aggregate Demand and Supply Model

Macroeconomic Policy and Aggregate Demand and Supply Analysis

The Financial System and Economic Growth

Financial Crises and the Economy

Fiscal Policy and the Government Budget

Exchange Rates and International Economic Policy

Consumption and Saving

Investment

The Labor Market, employment, and Unemployment

The Role of Expectations in Macroeconomic Policy

Modern Business Cycle Theory

Filters

As the financial crisis became more severe in 2008,the Federal Reserve undertook a(n) of monetary policy,an effect of which is to inflation.