In an open market purchase, the Fed ________ government securities, which ________ bank reserves and ________ the federal funds rate
A) sells; increases; lowers
B) buys; increases; raises
C) buys; increases; lowers
D) buys; decreases; raises
E) sells; decreases; lowers
C
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The term "dirty float" is used to describe:
a. international agreements about fishing rights that were developed in the 1960s. b. the system of exchange rates, which relies primarily on market forces with limited government intervention. c. the inflation that followed price controls implemented by the Nixon administration. d. unsound monetary policy.
If the Fed wishes to maintain its interest rate target in the face of increased money demand it would likely
a. increase the money supply. b. decrease the money supply. c. more stringently enforce already existing banking regulations. d. propose new banking regulations. e. become more lax when it enforces already existing banking regulations.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
If the dollar appreciates and the U.S. AD curve shifts _______________ by an amount less than the U.S. SRAS curve shifts __________________, then Real GDP will _________________________
A) rightward; leftward; increase B) rightward; leftward; decrease C) leftward; rightward; increase D) leftward; rightward; decrease