Question : 91) In the money market, if the quantity of money : 1238081

91) In the money market, if the quantity of money supplied exceeds the quantity of money demanded, the nominal interest rate will ________ and the prices of assets will ________.

A) rise; increase

B) rise; decrease

C) fall; increase

D) fall; decrease

E) fall; not change

92) If the quantity of money supplied is greater than the quantity of money demanded, then the

A) nominal interest rate rises.

B) nominal interest rate falls.

C) price of financial assets falls.

D) money supply decreases.

E) price level falls.

93) When the Fed changes the quantity of money, there is an immediate effect on

A) the nominal interest rate.

B) real GDP.

C) the price level but not the inflation rate.

D) the inflation rate but not the price level.

E) the price level and the inflation rate.

94) If the Fed wants to raise the interest rate, in the short run in the money market the Fed

A) decreases the quantity of money.

B) increases the quantity of money.

C) shifts the demand for money curve leftward.

D) shifts the demand for money curve rightward.

E) directly raises the interest rate and does nothing to either the supply of money or the demand for money.

95) If the Fed is worried about inflation and wants to raise the interest rate, in the short run it can

A) increase the demand for money.

B) increase the quantity of money.

C) decrease the demand for money.

D) decrease the quantity of money.

E) directly raise the interest rate without affecting either the demand for money or the supply of money.

96) In the money market, in the short run if the quantity of money exceeds the quantity of money demanded, then to achieve equilibrium the

A) supply of money increases.

B) nominal interest rate falls.

C) inflation rate increases.

D) demand for money increases.

E) price level rises.

97) In the money market, in the short run in order to decrease the nominal interest rate, the Fed must

A) increase the quantity of money.

B) increase the discount rate.

C) decrease the demand for money.

D) decrease the quantity of money.

E) directly lower the interest rate and not change either the demand for money or the supply of money.

98) In the short run, when the Fed increases the quantity of money, the

A) demand for money increases.

B) price level decreases.

C) nominal interest rate falls.

D) quantity demanded of money decreases.

E) demand for money decreases.

99) Other things the same, if the Fed increases the quantity of money, the supply of money curve shifts

A) rightward and the nominal interest rate decreases.

B) leftward and the nominal interest rate increases.

C) rightward and the real interest rate increases.

D) leftward and the real interest rate increases.

E) leftward and the nominal interest rate decreases.

100) Other things the same, if the Fed increases the quantity of money, the ________ because ________.

A) nominal interest rate decreases; the supply of money curve shifts rightward

B) nominal interest rate decreases; the supply of money curve shifts leftward

C) nominal interest rate does not change; only the real interest rate is effected

D) nominal interest rate increases; the supply of money curve shifts rightward

E) nominal interest rate increases; the supply of money curve shifts leftward