a) Assume that the Fed decides to decrease the supply of money in the economy. E

Question

a) Assume that the Fed decides to decrease the supply of money in the economy.  Equilibrium interest in the economy will _____. rise fall remain unchanged because the interest rate has nothing to do with th supply of money none of the above b) To increase the interest rate, the Federal Reserve will ____ the quantity of money by ____ government securities increase, selling increase, buying decrease, selling decrease, buying c) The demand for money decreases and the demand for money curve shifts leftward if the real interest rate decreases the nominal interest rate decreases real gdp decreases the inflation rate increases a) Assume that the Fed decides to decrease the supply of money in the economy.  Equilibrium interest in the economy will _____. rise fall remain unchanged because the interest rate has nothing to do with th supply of money none of the above b) To increase the interest rate, the Federal Reserve will ____ the quantity of money by ____ government securities increase, selling increase, buying decrease, selling decrease, buying c) The demand for money decreases and the demand for money curve shifts leftward if the real interest rate decreases the nominal interest rate decreases real gdp decreases the inflation rate increases b) To increase the interest rate, the Federal Reserve will ____ the quantity of money by ____ government securities increase, selling increase, buying decrease, selling decrease, buying c) The demand for money decreases and the demand for money curve shifts leftward if the real interest rate decreases the nominal interest rate decreases real gdp decreases the inflation rate increases increase, selling increase, buying decrease, selling decrease, buying c) The demand for money decreases and the demand for money curve shifts leftward if the real interest rate decreases the nominal interest rate decreases real gdp decreases the inflation rate increases c) The demand for money decreases and the demand for money curve shifts leftward if the real interest rate decreases the nominal interest rate decreases real gdp decreases the inflation rate increases increase, selling increase, buying decrease, selling decrease, buying c) The demand for money decreases and the demand for money curve shifts leftward if the real interest rate decreases the nominal interest rate decreases real gdp decreases the inflation rate increases

Explanation / Answer

remain unchanged because the interest rate has nothing to do with th supply of money

decrease, selling

the nominal interest rate decreases

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