Time left 2:21-20 11) If the required reserve ratio is 0.03, there are no excess reserves, and people want to hold no cu
Posted: Sun May 29, 2022 8:23 pm
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7 T PODP 130 120 1.10 100 8 SAI ADI AD 0 7 COP 1992 12) In the above figure, suppose point A is the original equilibrium If there is an increase in the quantity of money that shifts the aggregate demand curve AD, the new short-run equilibrium is given by point (2 points) O a. A (that is, the equilibrium does not change). Ob. B. OC C O d. D. Next pape 700
100 lag 1 8 (AS D 13) In the above figure, suppose point A is the original equilibrium. If there is an increase in the quantity of money that shifts the aggregate demand curve to AD, the long-run price level is (2 points) O a 90. Ob. 100. OC 110. O d. 120. mrton se expan Сла насто 130 120 100 90
14) When the Central Bank is it is (2 points) O a. adjusting the amount of money in circulation; issuing government bonds O b. issuing government bonds; conducting monetary policy O c. adjusting the amount of money in circulation; conducting monetary policy O d. regulating the nation's financial institutions; conducting monetary policy
15) If the required reserve ratio is increased and the banking system has no excess reserves, O a. the money supply will increase. O b. the money supply will decrease, bank deposits will decrease but there will be no effect on the supply of money. O d. bank loans will increase. (2 points)
16) If the Central Bank purchases government securities, all of the following occurs EXCEPT O a. Commercial bank reserves will increase. Ob. The money supply will increase. Oc. The discount rate will be forced higher. Od. There will be a multiple expansion of banking deposits. (2 points)
18) A rise in the interest rate will (2 points) O a. encourage people to sell bonds and hold money, O b. encourage people buy bonds and decrease the quantity of money they hold. O c. increase the level of money balances desired for medium of exchange purposes. O d. increase the quantity of currency in the economy. Time left 2:20