In the short run, an expansionary monetary policy by the Fed would:
a. reduce unemployment at the cost of higher inflation.
b. reduce inflation at the cost of a rise in the natural rate of unemployment.
c. reduce inflation and leave the natural unemployment rate unchanged.
d. reduce both inflation and unemployment.
e. increase both inflation and unemployment.
a
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If reserves in the banking system increase by $200, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is
A) 0.04. B) 0.25. C) 0.40. D) 0.50.
The original maturity on U.S. Treasury bills is between
A) three months and six months. B) one and ten years. C) six months and three years. D) ten and thirty years.
If a monopolist is producing the quantity at which marginal revenue equals marginal cost, it should
A. increase price and keep output unchanged if it wants to maximize profits. B. reduce output if it wants to maximize profits. C. increase output if it wants to maximize profits. D. continue to produce this amount if it wants to maximize profits.