35. When considering the change to the money demand curve, if the interest rate

Question

35. When considering the change to the money demand curve, if the interest rate rises, the quantity demanded is a. lower, moving leftward along the money demand curve b. higher, moving leftward along the money demand curve c. lower, movin d. higher, moving rightward along the money demand curve g rightward along the money demand curve 36. If the economy is in a recession, the Fed could a. buy bonds through open market operations to increase spending in the economy b. sell bonds through open market operations to increase spending in the economy c. increase the discount rate so banks will increase their lending in the economy d. increase the reserve requirement to increase confidence in the financial system 37. One of the difficulties in implementing monetary policy is: a. the time it takes to pass new monetary policy once the Fed has decided action is needed. b. the time it takes monetary policy to have an effect in the economy once enacted. c. the time i takes to enact monetary policy once the Fed has decided action is needed. d. All of these make monetary policy difficult to implement 38 inflation is more stable than inflation, because it excludes food and gasoline prices a. Core; headline b. Headline; core c. Core; nominal d. Nominal; core

Explanation / Answer

35. If interest rate rises, the quantity demanded for money would go down with movement being leftward along the demand curve.

OPTI N A

36. In times of recession, money supply is increased through open market operations by fed where it buys bonds to inject money in the economy.

OPTION A

37. OPTION D

38. OPTION D

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.