Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the price level increased. B) real GDP decreased.
C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.
A
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In the above figure, a price floor of $4
A) leads to a shortage. B) leads to a surplus. C) has no effect. D) shifts the demand curve leftward.
The expectations-augmented Phillips curve implies that as expected inflation increases, nominal wages ________ to prevent real wages from ________
A) fall; rising B) fall; falling C) rise; falling D) rise; rising
The type of monetary policy regime that the Federal Reserve has followed From the 1980s up until the time Ben Bernanke became chair of the Federal Reserve in 2006 can best be described as
A) monetary targeting. B) inflation targeting. C) policy with an implicit nominal anchor. D) exchange-rate targeting.
Which of the following statements about checkable deposits is correct?
A) Checkable deposits are a larger fraction of banks' funds today than in 1973. B) Checkable deposits are a smaller fraction of banks' funds today than in 1973. C) All checkable deposits pay interest. D) No checkable deposits pay interest.