Exam 15: Monetary Theory and Policy

Suppose that the demand and supply of money are initially in equilibrium,and that the demand for money increases.A monetary authority interested in keeping the money supply constant and the interest rate low must:

(Multiple Choice)

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Question 101

The demand for money is a downward sloping line that depicts the relationship between the price level and the opportunity cost of holding money.

(True/False)

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Question 102

Suppose the money demand curve shifts rightward.Which of the following is true about the alternative policy options available with the Fed?

(Multiple Choice)

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Question 103

The money demand curve slopes:

(Multiple Choice)

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Question 104

The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis.In this figure,an increase in the interest rate will cause a movement from: Figure 15.1

(Multiple Choice)

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Question 105

If the Fed increases the money supply,then:

(Multiple Choice)

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Question 106

A rising rate of inflation:

(Multiple Choice)

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Question 107

Which of the following monetary policies would be appropriate to close a recessionary gap?

(Multiple Choice)

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Question 108

Which of these is an advantage of money as a store of value?

(Multiple Choice)

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Question 109

During the 2007-2009 financial crisis,the Federal Reserve took some unusual steps in its conduct of monetary policy.Which of the following was not one of them?

(Multiple Choice)

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Question 110

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

(Multiple Choice)

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Question 111

In the long run,increases in the money supply increase the economy's potential output level.

(True/False)

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Question 112

The velocity of money is defined as:

(Multiple Choice)

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Question 113

A wider use of charge accounts and credit cards have reduced the demand for "walking-around" money.

(True/False)

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Question 114

Which of the following variables are assumed to be more or less constant in the quantity theory of money equation?

(Multiple Choice)

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Question 115

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

(Multiple Choice)

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Question 116

The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.The Fed can return the economy to potential output in the long run by: Figure 15.3

(Multiple Choice)

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Question 117

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

(Multiple Choice)

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Question 118

All other things constant,if the interest rate decreases on account of a monetary policy:

(Multiple Choice)

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Question 119

People prefer to hold less of their wealth in the form of financial assets like bonds and term deposits when:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 150

Suppose that the demand and supply of money are initially in equilibrium,and that the demand for money increases.A monetary authority interested in keeping the money supply constant and the interest rate low must:

The demand for money is a downward sloping line that depicts the relationship between the price level and the opportunity cost of holding money.

Suppose the money demand curve shifts rightward.Which of the following is true about the alternative policy options available with the Fed?

The money demand curve slopes:

The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis.In this figure,an increase in the interest rate will cause a movement from: Figure 15.1

If the Fed increases the money supply,then:

A rising rate of inflation:

Which of the following monetary policies would be appropriate to close a recessionary gap?

Which of these is an advantage of money as a store of value?

During the 2007-2009 financial crisis,the Federal Reserve took some unusual steps in its conduct of monetary policy.Which of the following was not one of them?

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

In the long run,increases in the money supply increase the economy's potential output level.

The velocity of money is defined as:

A wider use of charge accounts and credit cards have reduced the demand for "walking-around" money.

Which of the following variables are assumed to be more or less constant in the quantity theory of money equation?

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

The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.The Fed can return the economy to potential output in the long run by: Figure 15.3

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

All other things constant,if the interest rate decreases on account of a monetary policy:

People prefer to hold less of their wealth in the form of financial assets like bonds and term deposits when:

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 15: Monetary Theory and Policy

​Suppose that the demand and supply of money are initially in equilibrium,and that the demand for money increases.A monetary authority interested in keeping the money supply constant and the interest rate low must:

The demand for money is a downward sloping line that depicts the relationship between the price level and the opportunity cost of holding money.

​Suppose the money demand curve shifts rightward.Which of the following is true about the alternative policy options available with the Fed?

​The money demand curve slopes:

​The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis.In this figure,an increase in the interest rate will cause a movement from: Figure 15.1

​If the Fed increases the money supply,then:

​A rising rate of inflation:

​Which of the following monetary policies would be appropriate to close a recessionary gap?

​Which of these is an advantage of money as a store of value?

​During the 2007-2009 financial crisis,the Federal Reserve took some unusual steps in its conduct of monetary policy.Which of the following was not one of them?

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

In the long run,increases in the money supply increase the economy's potential output level.

​The velocity of money is defined as:

A wider use of charge accounts and credit cards have reduced the demand for "walking-around" money.

​Which of the following variables are assumed to be more or less constant in the quantity theory of money equation?

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

​The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.The Fed can return the economy to potential output in the long run by: ​ Figure 15.3 ​ ​

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

​All other things constant,if the interest rate decreases on account of a monetary policy:

​People prefer to hold less of their wealth in the form of financial assets like bonds and term deposits when:

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Suppose that the demand and supply of money are initially in equilibrium,and that the demand for money increases.A monetary authority interested in keeping the money supply constant and the interest rate low must:

Suppose the money demand curve shifts rightward.Which of the following is true about the alternative policy options available with the Fed?

The money demand curve slopes:

The figure given below shows the interest rate on the vertical axis and the quantity of money on the horizontal axis.In this figure,an increase in the interest rate will cause a movement from: Figure 15.1

If the Fed increases the money supply,then:

A rising rate of inflation:

Which of the following monetary policies would be appropriate to close a recessionary gap?

Which of these is an advantage of money as a store of value?

During the 2007-2009 financial crisis,the Federal Reserve took some unusual steps in its conduct of monetary policy.Which of the following was not one of them?

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

The velocity of money is defined as:

Which of the following variables are assumed to be more or less constant in the quantity theory of money equation?

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

The figure given below depicts short-run equilibrium in an aggregate demand-aggregate supply model.The Fed can return the economy to potential output in the long run by: Figure 15.3

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

All other things constant,if the interest rate decreases on account of a monetary policy:

People prefer to hold less of their wealth in the form of financial assets like bonds and term deposits when: