Suppose the money market is in the liquidity trap and the Fed increases the supply of money. Individuals would rather hold __________ than __________ because they expect that bond prices can go no __________
A) bonds; money; higher
B) bonds; money; lower
C) money; bonds; higher
D) money; bonds; lower
C
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The Federal Reserve can:
A. only set a money supply target that is consistent with a nominal interest rate target, and vice versa. B. only target the nominal interest rate, not the money supply. C. simultaneously set independent money supply and nominal interest rate targets. D. only target the money supply, not the nominal interest rate.
Which of the following statements about the United States is (are) correct?
i. The labor force is larger than the number of employed people. ii. The labor force is larger than the number of unemployed people. iii. The number of unemployed people is larger than the number of employed people. A) ii only B) iii only C) ii and iii D) i and ii E) i, ii, and iii
Of the following Asian countries, which has the lowest level of real GDP per person?
A) China B) Korea C) Singapore D) Hong Kong
In the monetary small open-economy model with a flexible exchange rate, an increase in the exchange rate has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.