The immediate impact of a decrease in the reserve requirement is: a. Increase in the money supply b. Decrease in the money supply c. Increase in money demand d. Decrease in money demand

If the Bank of Canada were to conduct an open market purchase, it would Select one: a. decrease the money supply and decrease output. b. increase the money supply and decrease output. c. increase the money supply and increase output. d. decrease the money supply and increase output.

f the Fed wants to raise interest rates, then it can use its open market operations to: Group of answer choices decrease the money supply. increase the money supply. increase money demand. decrease money demand.

The Fed increases money supply during routine open market operations by Select one: a. Issuing new govt bonds b. Selling new govt bonds c. Buying existing govt bonds d. Selling existing govt bonds e. Buying your shoes

If the money supply is $60 and nominal GDP is $360, then Group of answer choices A) the velocity of money must be 300. B) the velocity of money must be 4.2. C) the velocity of money must be 3. D) the velocity of money must be 60. E) the velocity of money must be 6.

Draw diagrams illustrating the impact on the demand for money, the supply of money and the equilibrium interest rate, of each of the following. Explain what is going on in the money market in each case. (a) The central bank sells securities on the open market. (b) The economy grows (GDP increases) but the central bank moves to keep interest rates constant.

In countries with extremely high inflation, increases in the money supply:     A) are quickly translated into changes in the inflation rate.   B) do not affect the price level.   C) will decrease real GDP.   D) will increase real GDP.

I'd like help on b,c,d

3. The effect of changes in the money supply The following diagram represents the money market in the United States, which is currently in equilibrium, as indicated by the grey star. INTEREST RATE (Percent) 6.0 5.5 Money Demand 5.0 4.5 4.0 3.5 3.0 2.5 20+ 0.6 07 Money Supply 0.9 1.0 1.1 0.8 1.2 QUANTITY OF MONEY (Trillions of dollars) 1.3 New Curve New Equilibrium (?) Suppose the Federal Reserve (the Fed) announces that it is raising its target interest rate by 50 basis points, or 0.50%. It would achieve this by Use the green line (triangle symbols) on the preceding graph to illustrate the effects of this policy. Place the a the black point (plus symbol) on the graph to indicate the new equilibrium interest rate and quantity of money. The sequence of events that results in a new equilibrium interest rate, after the Fed makes the change you selected, may be described as follows: Because there is money in the financial system, there is an excess money at the initial equilibrium interest…

A purchase of U.S. government securities by the Fed causes   A. a multiple contraction of the money supply because deposits fall by more than the amount of the securities purchased.   B. a contraction of the money supply equal to the amount of the securities because all other transactions occur within the banking system.   C. an expansion of the money supply equal to the amount of the securities because all other transactions occur within the banking system.   D. a multiple expansion of the money supply because the required reserve ratio is less than one