Question :
61.Whichofthefollowingiscorrect?
a.IftheFedpurchasesbondsintheopenmarket,thenthemoneysupplycurveshiftsright.Achangeinthepriceleveldoesnotshiftthemoneysupplycurve.
b.IftheFedsellsbondsinthe : 1262083
61.Whichofthefollowingiscorrect?
a.IftheFedpurchasesbondsintheopenmarket,thenthemoneysupplycurveshiftsright.Achangeinthepriceleveldoesnotshiftthemoneysupplycurve.
b.IftheFedsellsbondsintheopenmarket,thenthemoneysupplycurveshiftsright.Achangeinthepriceleveldoesnotshiftthemoneysupplycurve.
c.IftheFedpurchasesbonds,thenthemoneysupplycurveshiftsright.Anincreaseinthepricelevelshiftsthemoneysupplycurveright.
d.IftheFedsellsbonds,thenthemoneysupplycurveshiftsright.Adecreaseinthepricelevelshiftsthemoneysupplycurveright.
62.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,iftheFederalReservesellsbonds,thenthemoneysupplycurve
a.shiftsright,causingthepriceleveltorise.
b.shiftsright,causingthepriceleveltofall.
c.shiftsleft,causingthepriceleveltorise.
d.shiftsleft,causingthepriceleveltofall.
63.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,iftheFederalReservebuysbonds,thenthemoneysupplycurve
a.shiftsrightward,causingthevalueofmoneymeasuredintermsofgoodsandservicestorise.
b.shiftsrightward,causingthevalueofmoneymeasuredintermsofgoodsandservicestofall.
c.shiftsleftward,causingthevalueofmoneymeasuredintermsofgoodsandservicestorise.
d.shiftsleftward,causingthevalueofmoneymeasuredintermsofgoodsandservicestofall.
64.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,iftheFedsellsbondsthen
a.themoneysupplyandthepricelevelincrease.
b.themoneysupplyandthepriceleveldecrease.
c.themoneysupplyincreasesandthepriceleveldecreases.
d.themoneysupplyincreasesandthepricelevelincreases.
65.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,adecreaseinthemoneysupplyleadspeopleto
a.spendmoresothevalueofadollarrises.
b.spendmoresothevalueofadollarfalls.
c.spendlesssothevalueofadollarrises.
d.spendlesssothevalueofadollarfalls.
66.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,ifmoneysupplyandmoneydemandbothshifttotheright
a.thepricelevelmusthaverisen
b.thepricelevelmusthavefallen.
c.thepricelevelrisesifmoneysupplyshiftsfartherthanmoneydemand.
d.thepricelevelfallsifmoneysupplyshiftsfartherthanmoneydemand.
67.Considerthemoneymarketdrawnwiththevalueofmoneyontheverticalaxis.Ifmoneydemandisunchangedandthepricelevelrises,then
a.themoneysupplymusthaveincreased,perhapsbecausetheFedboughtbonds.
b.themoneysupplymusthaveincreased,perhapsbecausetheFedsoldbonds.
c.themoneysupplymusthavedecreased,perhapsbecausetheFedboughtbonds.
d.themoneysupplymusthavedecreased,perhapsbecausetheFedsoldbonds.
68.Supposethereisasurplusinthemoneymarket.
a.Thiscouldhavebeencreatedbyanincreaseinthemoneysupply.Thevalueofmoneywillrise.
b.Thiscouldhavebeencreatedbyanincreaseinthemoneysupply.The value ofmoney will fall.
c.Thiscouldhavebeencreatedbyadecreaseinthemoneysupply.Thevalueofmoneywillrise.
d.Thiscouldhavebeencreatedbyadecreaseinthemoneysupply.Thevalue of money will fall.
69.Thevalueofmoneyfalls.ThismightbebecausetheFederalReserve
a.boughtbonds,whichincreasedthemoneysupply.
b.boughtbonds,whichdecreasedthemoneysupply.
c.soldbonds,whichincreasedthemoneysupply.
d.soldbonds,whichdecreasedthemoneysupply.
70.Whenthemoneymarketisdrawnwiththevalueofmoneyontheverticalaxis,ifmoneydemandshiftsleftward,theninitiallythereisan
a.excessdemandformoneywhichcausesthepriceleveltorise.
b.excessdemandformoneywhichcausesthepriceleveltofall.
c.excesssupplyofmoneywhichcausesthepriceleveltorise.
d.excesssupplyofmoneywhichcausesthepriceleveltofall.