Part4_ExtraHomework-2

Part4_ExtraHomework-2 - Intro Macro Extra Homework...

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Intro Macro Extra Homework Questions Part 4 These questions are not a substitute for the questions in your study guide. These questions are to be done in addition to the questions in your study guide. Do not limit your studying to just these questions or only these topics. These questions will not be graded. They are to help you study. 1 . T h e e q u i l i b r i u m s h o r t - r u n i n t e r e s t r a t e i s d e t e rmined at the intersection of the demand and supply curves in the market for a. labor b. money c. capital goods d. mortgage funds e. corporate bonds 2 . I f t h e F e d w a n t s t o l o w e r t h e i n t e r e s t r a t e , i t will a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a lower market interest rate 3 . I f t h e F e d w a n t s t o r a i s e t h e i n t e r e s t r a t e , i t will a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a higher market interest rate 4 . A r e d u c e d i n t e r e s t r a t e s t i m u l a t e s i n v e s t m e n t b
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Part4_ExtraHomework-2 - Intro Macro Extra Homework...

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