Multiple Choice
Unpredictable shocks to the financial system
A) increase the demand for money.
B) affect small depositors more so than large depositors.
C) reduce the demand for money.
D) result in money neutrality.
E) cause consumers and firms to switch to credit cards.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: A classical dichotomy refers to the fact
Q2: If an increase in the level of
Q3: To increase the nominal money supply, the
Q4: An open market purchase<br>A)causes decrease in the
Q6: Quantitative easing occurs when the central bank<br>A)increases
Q7: Quantitative easing may work because<br>A)interest rate increases
Q8: An increase in the perceived instability of
Q9: Government printing of money to finance government
Q10: Unconventional monetary policy includes<br>A)money growth targeting.<br>B)negative nominal
Q11: Buying an item with cash would be