Question :
181.RefertoFigure34-4.Whichofthefollowingeventscouldexplainashiftofthemoney-demandcurvefromMD1toMD2?
a.adecreaseinthepricelevel
b.adecreaseinthecostofborrowing
c.anincreasei : 1262202
181.RefertoFigure34-4.Whichofthefollowingeventscouldexplainashiftofthemoney-demandcurvefromMD1toMD2?
a.adecreaseinthepricelevel
b.adecreaseinthecostofborrowing
c.anincreaseinthepricelevel
d.anincreaseinthecostofborrowing
182.RefertoFigure34-4.Whichofthefollowingeventscouldexplainadecreaseintheequilibriuminterestratefromr1tor3?
a.adecreaseinthepricelevel
b.adecreaseinthenumberoffirmsbuildingnewfactoriesandbuyingnewequipment
c.anincreaseinthepricelevel
d.anincreaseinthenumberoffirmsbuildingnewfactoriesandbuyingnewequipment
183.RefertoFigure34-4.Supposethemoney-demandcurveiscurrentlyMD1.Ifthecurrentinterestrateisr2,then
a.thequantityofmoneythatpeoplewanttoholdislessthanthequantityofmoneythattheFederalReservehassupplied.
b.peoplewillrespondbysellinginterest-bearingbondsorbywithdrawingmoneyfrominterest-bearingbankaccounts.
c.bondissuersandbankswillrespondbyloweringtheinterestratestheyoffer.
d.inresponse,themoney-demandcurvewillshiftrightwardfromitscurrentpositiontoestablishequilibriuminthemoneymarket.
184.RefertoFigure34-4.Supposethemoney-demandcurveiscurrentlyMD2.Ifthecurrentinterestrateisr2,then
a.inresponse,themoney-demandcurvewillshiftrightwardfromitscurrentpositiontoestablishequilibriuminthemoneymarket.
b.peoplewillrespondbysellinginterest-bearingbondsorbywithdrawingmoneyfrominterest-bearingbankaccounts.
c.bondissuersandbankswillrespondbyloweringtheinterestratestheyoffer.
d.thereisashortageofmoney.
185.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr1.Whichofthefollowingeventswouldcausetheequilibriuminterestratetoincrease?
a.TheFederalReserveincreasesthemoneysupply.
b.Moneydemandincreases.
c.Thepriceleveldecreases.
d.Alloftheabovearecorrect.
186.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr3.Whichofthefollowingeventswouldcausetheequilibriuminterestratetodecrease?
a.TheFederalReserveincreasesthemoneysupply.
b.Moneydemanddecreases.
c.Thepriceleveldecreases.
d.Alloftheabovearecorrect.
187.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr1.LetY1representthecorrespondingquantityofgoodsandservicesdemanded,andletP1representthecorrespondingpricelevel.Startingfromthissituation,iftheFederalReserveincreasesthemoneysupplyandifthepricelevelremainsatP1,then
a.therewillbeanincreaseintheequilibriumquantityofgoodsandservicesdemanded.
b.therewillbeadecreaseintheequilibriumquantityofgoodsandservicesdemanded.
c.therewillbeanincreaseintheequilibriuminterestrate.
d.fewerfirmswillchoosetoborrowtobuildnewfactoriesandbuynewequipment.
188.RefertoFigure34-4.Supposethecurrentequilibriuminterestrateisr3.LetY3representthecorrespondingquantityofgoodsandservicesdemanded,andletP3representthecorrespondingpricelevel.Startingfromthissituation,iftheFederalReservedecreasesthemoneysupplyandifthepricelevelremainsatP3,then
a.therewillbeanincreaseintheequilibriumquantityofgoodsandservicesdemanded.
b.therewillbeadecreaseintheequilibriuminterestrate.
c.theaggregate-demandcurvewillshifttotheright.
d.fewerfirmswillchoosetoborrowtobuildnewfactoriesandbuynewequipment.
189.“Monetarypolicycanbedescribedeitherintermsofthemoneysupplyorintermsoftheinterestrate.”Thisstatementamountstotheassertionthat
a.rightwardshiftsofthemoney-supplycurvecannotoccuriftheFederalReservedecidestotargetaninterestrate.
b.theactivitiesoftheFederalReserve’sbondtradersareirrelevantiftheFederalReservedecidestotargetan
c.changesinmonetarypolicyaimedatexpandingaggregatedemandcanbedescribedeitherasincreasingthemoneysupplyorasincreasingtheinterestrate.
d.ouranalysisofmonetarypolicyisnotfundamentallyalterediftheFederalReservedecidestotargetaninterestrate.
190.“Monetarypolicycanbedescribedeitherintermsofthemoneysupplyorintermsoftheinterestrate.”Thisstatementamountstotheassertionthat
a.shiftsofthemoney-supplycurvecannotoccuriftheFederalReservedecidestotargetaninterestrate.
b.theaggregate-demandcurvewillnotshiftinresponsetoFederalReserveactionsiftheFeddecidestotargetaninterestrate.
c.changesinmonetarypolicyaimedatcontractingaggregatedemandcanbedescribedeitherasdecreasingthemoneysupplyorasraisingtheinterestrate.
d.theactivitiesoftheFederalReserve’sbondtradersareirrelevantiftheFederalReservedecidestotargetan