Exam 10: Monetary Policy and Aggregate Demand

Suppose real output is 12,500, and the demand for real money balances is = - 125i. If the equilibrium interest rate is 7 percent, calculate the money supply . If the central bank sets the interest rate at 8 percent, what is the new money supply?

(Essay)

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Question 81

A change in inflation leads to shifts of the ________ curves.

(Multiple Choice)

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Question 82

If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________.

(Multiple Choice)

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Question 83

According to liquidity preference theory, an increase in the price level would ________.

(Multiple Choice)

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Question 84

The MP Curve ________.

(Multiple Choice)

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Question 85

Showing 81 - 85 of 85

Suppose real output is 12,500, and the demand for real money balances is = - 125i. If the equilibrium interest rate is 7 percent, calculate the money supply . If the central bank sets the interest rate at 8 percent, what is the new money supply?

A change in inflation leads to shifts of the ________ curves.

If the central bank did not follow the Taylor principle, an increase in inflation would lead to a decrease in ________.

According to liquidity preference theory, an increase in the price level would ________.

The MP Curve ________.

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

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