Question :
151.WhentheFederalReservedecreasestheFederalFundstargetrate,thelowerrateisachievedthrough
a.salesofgovernmentbonds,whichreducesinterestratesandcausespeopletoholdlessmoney.
b.purchasesofgov : 1262199
151.WhentheFederalReservedecreasestheFederalFundstargetrate,thelowerrateisachievedthrough
a.salesofgovernmentbonds,whichreducesinterestratesandcausespeopletoholdlessmoney.
b.purchasesofgovernmentbonds,whichreducesinterestratesandcausespeopletoholdlessmoney.
c.purchasesofgovernmentbonds,whichreducesinterestratesandcausespeopletoholdmoremoney.
d.salesofgovernmentbonds,whichreducesinterestratesandcausespeopletoholdmoremoney.
152.WhentheFederalReserveincreasestheFederalFundstargetrate,itachievesthistargetby
a.purchasinggovernmentbonds.Thisactionwillreduceinvestmentandshiftaggregatedemandtotheright.
b.purchasinggovernmentbonds.Thisactionwillincreaseinvestmentandshiftaggregatedemandtotheright.
c.sellinggovernmentbonds.Thisactionwillreduceinvestmentandshiftaggregatedemandtotheleft.
d.sellinggovernmentbonds.Thisactionwillincreaseinvestmentandshiftaggregatedemandtotheleft.
153.IftheinterestrateisbelowtheFed’starget,theFedwould
a.buybondstoincreasethemoneysupply.
b.buybondstodecreasethemoneysupply.
c.sellbondstoincreasethemoneysupply.
d.sellbondstodecreasethemoneysupply.
154.IftheinterestrateisbelowtheFed’starget,theFedshould
a.buybondstoincreasebankreserves.
b.buybondstodecreasebankreserves.
c.sellbondstoincreasebankreserves.
d.sellbondstodecreasebankreserves.
155.TheFedisconcernedaboutstockmarketboomsbecausethebooms
a.increaseconsumptionspending.
b.increaseinvestmentspending.
c.increasebothconsumptionandinvestmentspending.
d.Noneoftheaboveiscorrect.
156.Whichofthefollowingactionsmightwelogicallyexpecttoresultfromrisingstockprices?
a.Jimdecreaseshisconsumptionspending.
b.Firmssellfewersharesofnewstock.
c.Firmsspendmoreoninvestment.
d.Noneoftheaboveiscorrect.
157.Ifthestockmarketbooms,then
a.aggregatedemandincreases,whichtheFedcouldoffsetbyincreasingthemoneysupply.
b.aggregatesupplyincreases,whichtheFedcouldoffsetbyincreasingthemoneysupply.
c.aggregatedemandincreases,whichtheFedcouldoffsetbydecreasingthemoneysupply.
d.aggregatesupplyincreases,whichtheFedcouldoffsetbydecreasingthemoneysupply.
158.Ifthestockmarketbooms,then
a.aggregatedemandincreases,whichtheFedcouldoffsetbypurchasingbonds.
b.aggregatesupplyincreases,whichtheFedcouldoffsetbysellingbonds.
c.aggregatedemandincreases,whichtheFedcouldoffsetbysellingbonds.
d.aggregatesupplyincreases,whichtheFedcouldoffsetbypurchasingthemoneysupply.
159.Ifthestockmarketcrashes,then
a.aggregatedemandincreases,whichtheFedcouldoffsetbyincreasingthemoneysupply.
b.aggregatedemandincreases,whichtheFedcouldoffsetbydecreasingthemoneysupply.
c.aggregatedemanddecreases,whichtheFedcouldoffsetbyincreasingthemoneysupply.
d.aggregatedemanddecreases,whichtheFedcouldoffsetbydecreasingthemoneysupply.
160.Ifthestockmarketcrashes,then
a.aggregatedemanddecreases,whichtheFedcouldoffsetbypurchasingbonds.
b.aggregatedemanddecreases,whichtheFedcouldoffsetbysellingbonds.
c.aggregatedemandincreases,whichtheFedcouldoffsetbysellingbonds.
d.aggregatedemandincreases,whichtheFedcouldoffsetbypurchasingthemoneysupply.