Chapter-12-宏观经济学原理-弗兰克版-题库（含答案）

Chapter12

Student:___________________________________________________________________________

1.

TheFederalReserveSystemis:

A.

agroupoftwelvecommercialbanks.

B.

thecentralbankoftheUnitedStates.

C.

theagencyoftheU.S.governmentthatinsurescommercialbankdeposits.

D.

thebranchoftheU.S.TreasurythatkeepstheU.S.goldreserves.

2.

ThecentralbankoftheUnitedStatesis:

A.

BankofAmerica.

B.

BankoftheUnitedStates.

C.

BankOne.

D.

theFederalReserveSystem.

3.

TheFederalReserveSystemfirstbeganoperationsin:

A.

1789.

B.

1865.

C.

1914.

D.

1934

4.

ThetwomainresponsibilitiesoftheFederalReserveSystemareto______andto______.

A.

apprehendcounterfeiters;regulatethestockmarket

B.

enablebankstomakeaffordablemortgages;controltheexchangerateoftheU.S.dollar

C.

insurebankdeposits;printcurrency

D.

conductmonetarypolicy;overseefinancialmarkets

5.

TheFederalReserveconsistsof______regionalbanks,______governorsontheBoardofGovernors,and______votingmembersoftheFederalOpenMarketCommittee.

A.

7;12;12

B.

12;7;12

C.

12;7;19

D.

14;7;21

6.

ThesevenleadersoftheFederalReserveSystemheadquarteredinWashington,D.C.constitutethe:

A.

FederalReserveBankofWashington,D.C.

B.

FederalOpenMarketCommittee.

C.

FederalEconomicAdvisoryBoard.

D.

BoardofGovernors.

7.

TheBoardofGovernorsconsistsof______governorsappointedforstaggered______terms.

A.

5;12-year

B.

5;14-year

C.

7;12-year

D.

7;14-year

8.

ThesevenFedgovernors,thepresidentoftheFederalReserveBankofNewYork,andfourofthepresidentsoftheotherregionalFederalReserveBanksconstitutethe:

A.

NationalMonetaryCommission.

B.

BoardofGovernors.

C.

FederalOpenMarketCommittee.

D.

FederalReserveSystem.

9.

TheFederalOpenMarketCommitteemakesdecisionsabout______policy.

A.

monetary

B.

fiscal

C.

banking

D.

depositinsurance

10.

Themostimportant,mostconvenient,andmostflexiblewayinwhichtheFederalReserveaffectsthesupplyofbankreservesisthrough:

A.

conductingopen-marketoperations.

B.

changingtheFederalReservediscountrate.

C.

changingbankreserverequirementratios.

D.

changinginterestrates.

11.

Abankingpanicisanepisodeinwhich:

A.

depositors,spurredbynewsorrumorsofpossiblebankruptcyofonebank,rushtowithdrawdepositsfromthebankingsystem.

B.

commercialbanks,fearingFederalReservesanctions,unwillinglyparticipateinopen-marketoperations.

C.

commercialbanks,concernedabouthighinterestrates,rushtoborrowattheFederalReservediscountrate.

D.

depositors,afraidofincreasinginterestrates,attempttoengageindiscount-windowborrowingattheFederalReserve.

12.

Bankdepositorswillnotlosetheirdepositsinabankingpanicif:

A.

thereisfractionalreservebanking.

B.

thereis100%reservebanking.

C.

thereisacentralbank.

D.

theactualreserve/depositratioequalsthedesiredreserve/depositratio.

13.

DuringtheGreatDepressionintheUnitedStatesbetween1929and1933,banks'reserve/depositratio______andtheamountofcurrencyheldbythepublic____,whilethemoneysupply______.

A.

increased;increased;increased

B.

decreased;decreased;decreased

C.

increased;increased;decreased

D.

decreased;decreased;increased

14.

Depositinsuranceisasysteminwhichthegovernmentguaranteesthat:

A.

depositorswillnotloseanymoneyeveniftheirbankgoesbankrupt.

B.

peoplecanhavedepositsatcommercialbanks.

C.

commercialbankswillnotgobankrupt.

D.

commercialbankswillnotloseanydeposits.

15.

TheU.S.Congressinstitutedasystemofdepositinsuranceforbanksin:

A.

1789.

B.

1865.

C.

1913.

D.

1934.

16.

OneoftheseriousdrawbacksofthedepositinsurancesystemintheUnitedStatesisthat:

A.

bankfailurescontinuetooccurregularly.

B.

thesystemtookawaytheFederalReserve'sabilitytoconductopen-marketoperations.

C.

thesystemtookawaytheFederalReserve'sabilitytochangereserverequirements.

D.

ifinsuredintermediariesmakemanybadloans,thetaxpayersmayberesponsibleforcoveringthelosses.

17.

Basedontheinformationinthetable,whatquantityofreservesdidtheFederalReserveinjectintotheeconomyin1932?

Currencyheldbypublic(inbillions)

Reserve-depositratio

Bankreserves(inbillions)

Moneysupply(inbillions)

December1931

$4.59

0.095

$3.11

$37.3

December1932

$4.82

0.109

$3.18

$34.0

A.

$0.30billion

B.

$0.23billion

C.

$0.16billion

D.

$0.07billion

18.

Basedontheinformationinthetable,whatquantityofreserveswouldtheFederalReservehavehadtoinjectintotheeconomyin1932topreventthemoneysupplyfromfalling,giventhatthepublicincreasedtheamountofcurrencyitheldandthatbanksincreasedthereserve-depositratio?

Currencyheldbypublic(inbillions)

Reserve-depositratio

Bankreserves(inbillions)

Moneysupply(inbillions)

December1931

$4.59

0.095

$3.11

$37.3

December1932

$4.82

0.109

$3.18

$34.0

A.

$0.30billion

B.

$0.66billion

C.

$0.89billion

D.

$3.54billion

19.

Basedontheinformationinthetable,thetotalamountofbankdepositsdecreasedfrom______to______overthecourseof1932.

Currencyheldbypublic(inbillions)

Reserve-depositratio

Bankreserves(inbillions)

Moneysupply(inbillions)

December1931

$4.59

0.095

$3.11

$37.3

December1932

$4.82

0.109

$3.18

$34.0

A.

$37.3billion;$32.7billion

B.

$32.7billion;$29.2billion

C.

$34.2billion;$30.8billion

D.

$37.3billion;$34.0billion

20.

Basedontheinformationinthetable,ifthepublichadnotdecidedtoholdmorecurrencyin1932,buttheactionsoftheFederalReserveandthebanksremainedthesame,themoneysupplyattheendof1932wouldhavebeen:

Currencyheldbypublic(inbillions)

Reserve-depositratio

Bankreserves(inbillions)

Moneysupply(inbillions)

December1931

$4.59

0.095

$3.11

$37.3

December1932

$4.82

0.109

$3.18

$34.0

A.

$33.8billion

B.

$34.2billion

C.

$35.9billion

D.

$36.1billion

21.

Basedontheinformationinthetable,wecanconcludethat,in1932,eachofthefollowingeventsoccurredexcept:

Currencyheldbypublic(inbillions)

Reserve-depositratio

Bankreserves(inbillions)

Moneysupply(inbillions)

December1931

$4.59

0.095

$3.11

$37.3

December1932

$4.82

0.109

$3.18

$34.0

A.

Thepublicincreasedtheamountofcurrencyitheld.

B.

Bankswerekeepingmoreoftheirdepositsinreserves,andmakingfewerloans.

C.

TheFederalReserveconductedopen-marketsalesofU.S.governmentbonds.

D.

TheFederalReserveinjectedreservesintothebankingsystem.

22.

Refertothetablebelow.Theamountofcurrencyheldbythepublic______,andtheamountofreservesheldbybanks______.Itmustbethecasethat,in1932,theFederalReserve______.

Currencyheldbypublic(inbillions)

Reserve-depositratio

Bankreserves(inbillions)

Moneysupply(inbillions)

December1931

$4.59

0.095

$3.11

$37.3

December1932

$4.82

0.109

$3.18

$34.0

A.

increased;alsoincreased;increasedthediscountrate

B.

decreased;alsodecreased;kepttherateofinflationlow

C.

decreased;increased;performedopen-marketoperations

D.

increased;alsoincreased;injectedreservesintotheeconomy

23.

Thefederalfundsrateistheinterestrateonshort-termloansmadeby:

A.

theFederalReservetocommercialbanks.

B.

thefederalgovernmenttotheFederalReserve.

C.

theFederalReservetothefederalgovernment.

D.

commercialbankstoothercommercialbanks.

24.

Theinterestratethatcommercialbankschargeeachotherforveryshort-termloansiscalledthe:

A.

primerate.

B.

federalfundsrate.

C.

FederalReservediscountrate.

D.

commercialpaperrate.

25.

Financialmarketspaycloseattentiontochangesinthefederalfundsratebecausethesechanges:

A.

directlyaffectalargevolumeofloans.

B.

indicatetheFed'splansformonetarypolicy.

C.

indicatecommercialbanklendingpolicies.

D.

directlyaffecttheinterestpaymentsonthenationaldebt.

26.

Forthepast40years,theFederalReservehasexpressedpolicyintermsofatargetvaluefor:

A.

bankreserves.

B.

theFederalReservediscountrate.

C.

thefederalfundsrate.

D.

openmarketoperations.

27.

Ahigherrealinterestrate______savingand______consumptionspending.

A.

increases;increases

B.

increases;decreases

C.

doesnotchange;doesnotchange

D.

decreases;increases

28.

Alowerrealinterestrate______savingand______consumptionspending.

A.

increases;increases

B.

increases;decreases

C.

doesnotchange;doesnotchange

D.

decreases;increases

29.

Ahigherrealinterestrate______investmentspendingand______consumptionspending.

A.

increases;increases

B.

increases;decreases

C.

decreases;decreases

D.

decreases;increases

30.

Changesinconsumptionandplannedinvestmentspendingduetochangesintherealinterestratealter:

A.

themoneysupply.

B.

moneydemand.

C.

autonomousexpenditures.

D.

inducedexpenditures.

31.

Inacertaineconomy,thecomponentsofplannedspendingaregivenby:

C=500+0.8(Y-T)-300r

Ip=200-400r

G=200

NX=10

T=150

Giventheinformationabouttheeconomyabove,whichexpressionbelowgivesplannedaggregateexpenditure(PAE)?

A.

[790-700r]+0.8Y

B.

[790–700r]

C.

[910–700r]

D.

[910–700r]+0.8Y

32.

Inacertaineconomy,thecomponentsofplannedspendingaregivenby:

C=500+0.8(Y-T)-300r

Ip=200-400r

G=200

NX=10

T=150

Giventheinformationabouttheeconomyabove,whichexpressionbelowgivesautonomousexpenditures?

A.

0.8Y

B.

[790-700r]

C.

[910-700r]

D.

[760-700r]

33.

Inacertaineconomy,thecomponentsofplannedspendingaregivenby:

C=500+0.8(Y-T)-300r

Ip=200-400r

G=200

NX=10

T=150

Giventheinformationabouttheeconomyabove,whichexpressionbelowgivesinducedexpenditures?

A.

[910-700r]

B.

[790-700r]

C.

0.8Y

D.

0.2Y

34.

Inacertaineconomy,thecomponentsofplannedspendingaregivenby:

C=500+0.8(Y-T)-300r

Ip=200-400r

G=200

NX=10

T=150

Giventheinformationabouttheeconomyabove,whatwouldbetheimpactonautonomousexpendituresofaone-percentage-pointincreaseintherealinterestrate?

A.

Autonomousexpenditureswouldincreaseby35units.

B.

Autonomousexpenditureswoulddecreaseby70units.

C.

Autonomousexpenditureswoulddecreaseby35units.

D.

Autonomousexpenditureswoulddecreaseby7units.

35.

Inacertaineconomy,thecomponentsofplannedspendingaregivenby:

C=500+0.8(Y-T)-300r

Ip=200-400r

G=200

NX=10

T=150

Giventheinformationabouttheeconomyabove,whatwouldbetheimpactoninducedexpendituresofaone-percentage-pointincreaseintherealinterestrate?

A.

Inducedexpenditureswouldincreaseby35units.

B.

Inducedexpenditureswouldnotchange.

C.

Inducedexpenditureswoulddecreaseby35units.

D.

Inducedexpenditureswoulddecreaseby7units.

36.

Inacertaineconomy,thecomponentsofplannedspendingaregivenby:

C=500+0.8(Y-T)-300r

Ip=200-400r

G=200

NX=10

T=150

Giventheinformationabouttheeconomyabove,whatwouldbetheimpactonshort-runequilibriumoutputofaone-percentage-pointincreaseintherealinterestrate,assumingtheincome-expendituremultiplierequals5?

A.

Short-runequilibriumoutputwouldincreaseby35units.

B.

Short-runequilibriumoutputwoulddecreaseby700units.

C.

Short-runequilibriumoutputwoulddecreaseby35units.

D.

Short-runequilibriumoutputwoulddecreaseby7units.

37.

IfplannedaggregatespendinginaneconomycanbewrittenasPAE=15,000+0.6Y-20,000r,andpotentialoutputequals36,000,whatrealinterestratemusttheFederalReservesettobringtheeconomytofullemployment?

A.

2percent

B.

3percent

C.

4percent

D.

5percent

38.

IfplannedaggregatespendinginaneconomycanbewrittenasPAE=15,000+0.6Y-20,000r,andpotentialoutputequals35,000,whatrealinterestratemusttheFederalReservesettobringtheeconomytofullemployment?

A.

2percent

B.

3percent

C.

4percent

D.

5percent

39.

Intheshort-run,iftheFederalReserveincreasesinterestrates,thenconsumptionandinvestment______,plannedaggregateexpenditure______,andshort-runequilibriumoutput_______.

A.

increase;increases;increases

B.

increase;increasesdecreases

C.

increase;decreases;decreases

D.

decrease;decreases;decreases

40.

Ifpotentialoutputequals4,000andshort-runequilibriumoutputequals3,500,thereisa______gapandtheFederalReservemust______realinterestratesinordertoclosethegap.

A.

recessionary;raise

B.

recessionary;reduce

C.

recessionary;notchange

D.

expansionary;raise

41.

Toclosearecessionarygap,theFederalReservemust______realinterestratesby______themoneysupply.

A.

increase;increasing

B.

increase;decreasing

C.

decrease;decreasing

D.

decrease;increasing

42.

Toclosearecessionarygap,theFed______interestrateswhich______plannedaggregatespendingand______short-runequilibriumoutput.

A.

reduces;increases;increases

B.

raises;decreases;increases

C.

raises;decreases;decreases

D.

reduces;increases;decreases

43.

InaneconomywhereplannedaggregatespendingisgivenbyPAE=5,500+0.6Y-20,000r,theinterestrateiscurrently5percent(0.05).Ifpotentialoutputequals11,750,thecentralbankmust______theinterestratetoclosethe____________gap.

A.

reduce;expansionary

B.

reduce;recessionary

C.

raise;recessionary

D.

raise;expansionary

44.

InaneconomywhereplannedaggregatespendingisgivenbyPAE=5,500+0.6Y-20,000r,theinterestrateiscurrently2percent(0.02).Ifpotentialoutputequals8,000,thecentralbankmust______theinterestratetoclosethe______gap.

A.

lower;expansionary

B.

lower;recessionary

C.

raise;recessionary

D.

raise;expansionary

45.

Iftheincome-expendituremultiplierequals4,anda1percentincreaseintherealinterestratereducesautonomousspendingby100units,thena1,000unitrecessionarygapcanbeeliminatedby______therealinterestrateby______percent.

A.

increasing;10.0

B.

increasing;4.0

C.

increasing;2.5

D.

decreasing;2.5

46.

Refertothefigurebelow.Basedonthediagram,ifpotentialoutputequals5,000andtherealinterestrateis5%,thenthereis______gapandtheFedmust______therealinterestratesothatoutputwillequalpotentialoutput.

A.

arecessionary;raise

B.

arecessionary;reduce

C.

nooutput;notchange

D.

anexpansionary;raise

47.

Refertothefigurebelow.Basedonthediagram,ifpotentialoutputequals5,000andtherealinterestrateis1%,thenthereis______gapandtheFedmust______therealinterestratesothatoutputwillequalpotentialoutput.

A.

arecessionary;raise

B.

arecessionary;reduce

C.

anexpansionary;reduce

D.

anexpansionary;raise

48.

Refertothefigurebelow.Basedonthediagram,ifpotentialoutputequals5,000andtherealinterestrateis3%,thenthereis______gapandtheFedmust______therealinterestratesothatoutputwillequalpotentialoutput.

A.

arecessionary;raise

B.

arecessionary;reduce

C.

nooutput;notchange

D.

anexpansionary;raise

49.

Refertothefigurebelow.Basedonthediagram,ifpotentialoutputequals8,000andtherealinterestrateis6%,thenthereis______gapandtheFedmust______therealinterestratesothatoutputwillequalpotentialoutput.

A.

arecessionary;raise

B.

arecessionary;reduce

C.

nooutput;notchange

D.

anexpansionary;raise

50.

Refertothefigurebelow.Basedonthediagram,ifpotentialoutputequals8,000andtherealinterestrateis2%,thenthereis______gapandtheFedmust______therealinterestratesothatoutputwillequalpotentialoutput.

A.

arecessionary;raise

B.

anexpansionary;reduce

C.

nooutput;notchange

D.

anexpansionary;raise

51.

Refertothefigurebelow.Basedonthediagram,ifpotentialoutputequals8,000andtherealinterestrateis4%,thenthereis______gapandtheFedmust______therealinterestratesothatoutputwillequalpotentialoutput.

A.

arecessionary;raise

B.

arecessionary;lower

C.

nooutput;notchange

D.

anexpansionary;raise

52.

Ifpotentialoutputequals3,000andshort-runequilibriumoutputequals3,500,thereisa(n)______gapandtheFederalReservemust______realinterestratesinordertoclosethegap.

A.

recessionary;raise

B.

recessionaryreduce

C.

recessionary;notchange

D.

expansionary;raise

53.

Ifpotentialoutputequals8,000andshort-runequilibriumoutputequals8,500,thereisa(n)______gapandtheFederalReservemust______realinterestratesinordertoclosethegap.

A.

recessionary;raise

B.

recessionaryreduce

C.

recessionary;notchange

D.

expansionary;raise

54.

Tocloseanexpansionarygap,theFed______interestrateswhich______plannedaggregatespendingand______short-runequilibriumoutput.

A.

raises;increases;increases

B.

raises;decreases;increases

C.

raises;decreases;decreases

D.

reduces;increases;decreases

55.

FederalReserveactionsthatincreasenominalinterestratesanddecreasethemoneysupply:

A.

closearecessionarygap.

B.

closeanexpansionarygap.

C.

raisetherateofinflation.

D.

raisebondprices.

56.

Iftheincome-expendituremultiplierequals2.5anda1percentincreaseintherealinterestratereducesautonomousspendingby200units,thena1,000unitexpansionarygapcanbeeliminatedby______therealinterestrateby______percent.

A.

increasing;2.5

B.

increasing;4.0

C.

increasing;2.0

D.

decreasing;2.0

57.

Oneproblemwithusingmonetarypolicytoaddress"bubbles"inassetmarketsisthat:

A.

doingsopresupposesthattheFederalReserveisbetterthanfinancial-marketprofessionalsatidentifyingbubbles.

B.

monetarypolicyiswell-suitedforaddressingtheproblemofinappropriatelyhighassetprices.

C.

reducingtherealinterestratetodealwiththebubblecouldleadtoinflation.

D.

theFederalReserveisnotinterestedinstabilizingoutput.

58.

Oneproblemwithusingmonetarypolicytoaddress"bubbles"inassetmarketsisthat:

A.

theFederalReserveisbetterthanfinancial-marketprofessionalsatidentifyingbubbles.

B.

monetarypolicyisnotaverygoodtoolforaddressingtheproblemofinappropriatelyhighassetprices.

C.

reducingtherealinterestratetodealwiththebubblecouldleadtoinflation.

D.

theFederalReserveisnotinterestedinstabilizingoutput.

59.

Theopportunitycostofmoneyis:

A.

thetimespentgoingtothebanktowithdrawfunds.

B.

thefeeschargedbybankstoprovidecheckingservices.

C.

thenominalinterestrate.

D.

thepricelevel.

60.

Thedecisionabouttheformsinwhichtoholdone'swealthiscalledthe______decision.

A.

Taylor

B.

portfolioallocation

C.

Fishereffect

D.

life-cycle

61.

Thedemandformoneyis:

A.

unlimited,sincepeoplewanttoholdasmuchmoneyaspossible.

B.

limitedbytheamountofcurrencyprintedbythegovernment.

C.

theamountofwealthanindividualchoosestoholdintheformofmoney.

D.

theamountofincomeanindividualchoosestoholdintheformofmoney.

62.

Thedecisionabouthowmuchmoneytoholdisanapplicationofthe:

A.

scarcityprinciple.

B.

principleofcomparativeadvantage.

C.

equilibriumprinciple.

D.

cost-benefitprinciple.

63.

Thebenefitofholdingmoneyis_______,whiletheopportunitycostofholdingmoneyis_______.

A.

thenominalinterestrate;thefeeschargedbybanks

B.

thenominalinterestrate;itsusefulnessincarryingouttransactions

C.

increasedincome;lostpurchasingpower

D.

itsusefulnessincarryingouttransactions;thenominalinterestrate

64.

InnovationsintheUnitedStates,suchascreditcards,debitcards,andATMshave:

A.

increasedthedemandformoney.

B.

decreasedthedemandformoney.

C.

hadnoimpactonthesupplyordemandformoney.

D.

increasedthesupplyofmoney.

65.

Threemacroeconomicfactorsthataffectthedemandformoneyare:

A.

thenominalinterestrate,realincome,andthepricelevel.

B.

thenominalinterestrate,capital,andlabor.

C.

globalization,skill-biasedtechnologicalchange,andlabormobility.

D.

capital,labor,andtechnology.

66.

Highernominalinterestrates______theamountofmoneydemandedandhigherrealincome______theamountofmoneydemanded.

A.

increase;increases

B.

increase;decreases

C.

decrease;increases

D.

decrease;decreases

67.

Lowernominalinterestrates______theamountofmoneydemandedandlowerrealincome______theamountofmoneydemanded.

A.

increase;increases

B.

increase;decreases

C.

increase;doesnotchange

D.

decrease;decreases

68.

Highernominalinterestrates______theamountofmoneydemandedandahigherpricelevel______theamountofmoneydemanded.

A.

increase;increases

B.

increase;decreases

C.

decrease;increases

D.

decrease;decreases

69.

Lowernominalinterestrates______theamountofmoneydemandedandalowerpricelevel______theamountofmoneydemanded.

A.

increase;increases

B.

increase;decreases

C.

increase;doesnotchange

D.

decrease;decreases

70.

Lowerrealincome______thedemandformoneyandalowerpricelevel______thedemandformoney.

A.

increases;increases

B.

increases;decreases

C.

increases;doesnotchange

D.

decreases;decreases

71.

Higherrealincome______thedemandformoneyandahigherpricelevel______thedemandformoney.

A.

increases;increases

B.

increases;decreases

C.

decreases;increases

D.

decreases;decreases

72.

WhichofthefollowingwouldbeexpectedtoincreasethedemandformoneyintheU.S.?

A.

Financialinvestorsbecomeconcernedaboutincreasingriskinessofstocks.

B.

Theeconomyentersarecession.

C.

Politicalinstabilitydecreasesdramaticallyindevelopingnations.

D.

On-linebankingallowscustomerstotransferfundsbetweencheckingandstockmutualfunds24hoursaday.

73.

WhichofthefollowingwouldbeexpectedtoincreasethedemandforU.S.currency?

A.

Competitionamongbrokersforcesdownthecommissionchargeforsellingbondsorstocks.

B.

Theeconomyentersarecession.

C.

Politicalinstabilityrisesdramaticallyindevelopingnations.

D.

On-linebankingallowscustomerstotransferfundsbetweencheckingandstockmutualfunds24hoursaday.

74.

WhichofthefollowingwouldbeexpectedtodecreasethedemandformoneyintheU.S.?

A.

Grocerystoresbegintoacceptcreditcardsinpayment.

B.

Theeconomyentersaboomperiod.

C.

Politicalinstabilityincreasesdramaticallyindevelopingnations.

D.

HouseholdsfearincreasingcomputerglitcheswillseverelylimittheirabilitytouseATMs.

75.

Themoneydemandcurverelates______tothe________.

A.

theaggregatequantityofmoneydemanded;aggregatedemand

B.

aggregatedemand;nominalinterestrate

C.

theaggregatequantityofmoneydemanded;pricelevel

D.

theaggregatequantityofmoneydemanded;nominalinterestrate

76.

Themoneydemandcurvewillshifttotherightif:

A.

thenominalinterestrateincreases.

B.

thenominalinterestratedecreases.

C.

thepricelevelincreases.

D.

thepriceleveldecreases.

77.

Themoneydemandcurvewillshifttotherightif:

A.

thenominalinterestrateincreases.

B.

realincomeincreases.

C.

ATMmachinesareintroduced.

D.

thepriceleveldecreases.

78.

Themoneydemandcurvewillshifttotheleftif:

A.

thenominalinterestrateincreases.

B.

thenominalinterestratedecreases.

C.

ATMmachinesareintroduced.

D.

thepricelevelincreases.

79.

Themoneydemandcurvewillshifttotheleftif:

A.

thenominalinterestrateincreases.

B.

thenominalinterestratedecreases.

C.

thepricelevelincreases.

D.

thepriceleveldecreases.

80.

Themoneydemandcurvewillshifttotheleftif:

A.

thenominalinterestrateincreases.

B.

thenominalinterestratedecreases.

C.

thepricelevelincreases.

D.

realincomedecreases.

81.

WhenArgentinesincreasetheirsavingsinU.S.dollars,theU.S.money:

A.

supplycurveshiftsleft.

B.

supplycurveshiftsright.

C.

demandcurveshiftsright.

D.

demandcurveshiftsleft.

82.

Becauseanincreaseinthenominalinterestrateraisestheopportunitycostsofholdingmoney,themoneydemandcurve:

A.

shiftstotheright.

B.

shiftstotheleft.

C.

slopesupward.

D.

slopesdownward.

83.

BecausetheFeddeterminesthemoneysupply,the:

A.

moneysupplycurveisdownwardsloping.

B.

moneysupplycurveisupwardsloping.

C.

moneysupplycurveisvertical.

D.

moneysupplycurveishorizontal.

84.

Theequilibriumquantityofmoneyincirculationisdeterminedby:

A.

theinteractionofanupward-slopingmoneysupplycurveandadownward-slopingmoneydemandcurve.

B.

thenominalinterestrate,realincome,andthepricelevel.

C.

theFederalReserve.

D.

thedecentralizedinteractionsbetweenhouseholdsandbusinesses.

85.

AnyvalueofthemoneysupplychosenbytheFederalReserveimpliesaspecificvaluefor______.

A.

potentialoutput

B.

thenominalinterestrate

C.

governmentpurchases

D.

thebudgetdeficit

86.

AnytargetvalueofthenominalinterestratechosenbytheFederalReserveimpliesaspecificvaluefor______.

A.

potentialoutput

B.

the