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Unformatted text preview: 2. The relationship between national income and the transaction demand for money. 3. The demand for money function 4. Precautionary and asset demand for money are determined by… 5. The relationship between bond prices and interest rates. 6. Find the interest rate on a bond . 7. Excess money demand will lead to… 8. An excess supply of money will… 9. If the Fed sell bonds in the open market what happens to the supply of bonds and the price of bonds? 10. To close a recessionary gap the Fed would… 11. The Fed would be pursuing a contractionary monetary policy if it were… 12. The direct effect of an increase the money supply is to… 13. An appreciation of the dollar is usually a sign that… 14. Equation of exchange 15. Qty. theory of money 16. Monetarists maintain that the Fed should… 17. The Keynesian analysis and monetary policy....
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- Fall '06
- Monetary Policy, Federal Reserve System, Fed, excess reserves