{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Assignment_2_2450_10

# Assignment_2_2450_10 - York University Department of...

This preview shows pages 1–3. Sign up to view the full content.

York University Department of Economics Faculty of Arts and Professional Studies AP / ECON 2450 M Fall 2010 I NTERMEDIATE M ACROECONOMIC T HEORY II P ROFESSOR T ASSO A DAMOPOULOS A SSIGNMENT 2 Section I: Multiple Choice Questions (Total Marks 48) 1. A government that finances its spending by printing money A) is actually financing its spending by borrowing from the public. B) is actually financing its spending by borrowing from other branches of government. C) is actually financing its spending by levying a tax on holdings of cash. D) is actually financing its spending by borrowing from people in other countries. 2. All of the following are assets that appear on the balance sheet of the Bank of Canada except 3. An open market operation where the Bank of Canada buys for \$1 million of bonds from the chartered banks will 4. Which of the following is the equation for the money supply?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
5. Under the sticky price model, an increase in the money supply will A) shift the money demand curve to the left, resulting in a decrease in the short-term nominal interest rate. B) shift the money supply curve to the right, resulting in a decrease in the short-term nominal interest rate. C) shift the money supply curve to the left, resulting in an increase in the short-term nominal interest rate. D) shift the money demand curve to the right, resulting in an increase in the short-term nominal interest rate.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern