Monetary Policy of Economics
The rate of interest banks charge on short-term loans to their best customers is the _____.
Based on the exchange rate table below, one u.s. dollar is able to buy _____ mexican pesos.
The federal funds rate is the _____ rate on _____ loans.
The demand curve for federal funds is _____.
Reserves consist of the currency in the _____ plus the balance on its _____ account at _____.
With all other things being equal, the money supply curve is drawn as ______.
If the fed wants to raise the federal funds rate, it will ______ bonds, which ________ bond prices.
The federal reserve generally uses ___________________ to implement monetary policy.
Quantity theory of money and prices states the hypothesis that changes in the money supply lead to ____proportional changes in the price level
Except for one point, the short run average cost must always be ________ the long run average cost.
An increase in the money supply, all else held constant, usually _____.
Money is __________ when a bank makes a loan to a customer.
In a recession the money supply can be increased by the fed _____________ securities.
Covered interest arbitrage moves the market ________ equilibrium because ________.
In the long run, if the money supply rises by 20 percent, the price level rises by ______.
A higher real interest rate ______ saving and ______ consumption spending.
A measure of how frequently money is turned over is called
In which market the money demand and money supply determine the equilibrium interest rate?
A decrease in the demand for money will shift the money demand curve ______.
The purpose of expansionary monetary policy is to increase _____.
A higher real interest rate ______ investment spending and ______ consumption spending.
Expansionary monetary policy refers to the ________ to increase real gdp.
Money market equilibrium occurs at which of the following?
If the fed buys government securities from commercial banks in the open market _____.
When does the Fed use a contractionary monetary policy?
What do many people believe was an important cause of the financial crisis of 2008-2009?
Excess reserves are a bank's _____ reserves minus its _____ reserves.
A sale of treasury bills by the federal reserve _____ interest rates and _____ the money supply.
In order to know how much to stimulate the economy, policy makers must know how much ______ should increase.
During inflation, the Fed will engage in a contractionary money policy by ______ the money supply and ______ the interest rate.
In the equation of exchange, which of the following letters represents real output?
Rising prices erode the value of money as a ________ and as a ________.
Examples of physical capital are ______. examples of financial capital are ______.
Bank deposits ______ and the quantity of money ______.
Normally the discount rate is _____ the federal funds rate.
The quantity theory of money and prices claims that changes in the ______ lead to equal proportional changes in the ______.
An increase in the time to the promised future payment ________ the present value of the payment.
Why does the Fed engage in quantitative easing?
An open market purchase ______ the monetary base. an open market sale ______ the monetary base.
Which of the following strategies do bond sellers use if many people are trying to get rid of bonds?