Suppose the money supply shifts from MS2 to MS1. Which of the following events could explain the shift? a. The Fed buys government bonds Ob. The price level has increased Oc. The value of money has decreased. d. The Fed conducts and open market sale of government bonds

All else equal, suppose the interest rate rise from 3% to 3.5%. What will happen in the supply of money? a. Shifts to the right. b. Shifts to the left. c. An upward movement along the supply curve. d. An downward movement along the supply curve. e. The supply will remain unchanged.

16 A change in-----------leads to a change in-----------as well.   a) the money supply indirectly; investment b) the interest rate; government purchases c) the money supply; government purchases d) consumption expenditures; the money supply

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A. Discuss, with the help of diagrams, Friedman’s argument concerning the short and long-run effects of an increase in the money supply. B. Now discuss how his argument can be extended to study short and long-run effects of changes in the growth rate of a growing money supply. Both parts please.

How does an increase in price level affect the money market?   a. Money demand increases b. Money supply decreases c. Money demand decreases d. Money supply increases

When the Fed sells government securities (bonds), the money supply will ______ .         a. first increase and then decrease         b. first decrease and then increase         c. increase d. decrease

When the Fed sells securities in the open​ market, the monetary base​ _______ and the interest rate​ _______.     A. ​decreases; falls   B. ​increases; rises   C. ​decreases; rises   D. ​increases; falls

Money neutrality is the idea that a. any policy can have intended and unintended consequences b. in the long-run, markets will clear and return the economy to equilibrium regardless of what happens to the money supply. c. there are two types of variables, nominal and real, and only nominal variables are affected by the money supply. d. nominal and real interest rates are unrelated.   During the middle of the 20th century, income inequality in developed economies generally fell. The reason for this was a. average incomes didn't rise but welfare systems redistributed income.  b. that returns to assets held by high income earners fell steadily. c. incomes overall rose but taxation systems were slowly made more and more progressive. d. a rise in average income with incomes of the bottom deciles rising faster than the top.