Ch 21 Review Questions - Question 1 0.2 out of 0.2 points...

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Unformatted text preview: Question 1 0.2 out of 0.2 points If the Fed conducts open- market sales, the money supply Selected Answer: Correct Answer: Question 2 0.2 out of 0.2 points Open-market purchases Selected Answer: Correct Answer: Question 3 0.2 out of 0.2 points The Federal Funds rate is the interest rate Selected Answer: Correct Answer: Question 4 0.2 out of 0.2 points If the interest rate is above the Fed's target, the Fed should Selected Answer: Correct Answer: Question 5 0.2 out of 0.2 points If the stock market crashes, Selected Answer: aggregate demand decreases, which the Fed could offset by increasing the money supply. Correct Answer: aggregate demand decreases, which the Fed could offset by increasing the money supply. Question 6 0.2 out of 0.2 points A decrease in government spending initially and primarily shifts Selected Answer: Correct Answer: Question 7 0.2 out of 0.2 points Which of the following tends to make aggregate demand shift right farther than the amount government expenditures...
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This note was uploaded on 03/30/2012 for the course ECO 155 taught by Professor Staff during the Spring '08 term at Missouri State University-Springfield.

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Ch 21 Review Questions - Question 1 0.2 out of 0.2 points...

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