When the Fed purchased a large quantity of long-term bonds, as it did during 2008-2010 with its quantitative easing policies, but most banks held onto their new reserves, the money multiplier ________ while the monetary base ________
A) increased; increased
B) increased; decreased
C) decreased; increased
D) decreased; decreased
C
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When the money market is drawn with the value of money on the vertical axis, a decrease in the money supply leads people to
a. spend more so the value of a dollar rises. b. spend more so the value of a dollar falls. c. spend less so the value of a dollar rises. d. spend less so the value of a dollar falls.
An expected future increase in the price of bananas may
A) increase the demand for bananas now. B) decrease the demand for bananas now. C) increase the supply of bananas now. D) make bananas an inferior good.
Which of the following is likely to happen when the Fed raises the federal funds rate?
A) The long-run interest rate will fall. B) The labor demand curve shifts to the left. C) The volume of economic activity will increase. D) The labor demand curve shifts to the right.
In a private placement, a(n) __________ and __________ are sent to prospective investors
A) offering memorandum, term sheet B) registration statement, term sheet C) registration statement, offering prospectus D) offering memorandum, offering prospectus