Unformatted text preview: a. True
____ 170. If there is an excess demand for money in the economy,
a. there is also an excess supply of money.
b. there is also an excess demand for bonds.
c. there is also an excess supply of bonds.
d. the interest rate will fall.
e. there is also an excess supply of housing.
____ 171. If the interest rate is below its equilibrium value, the price of
a. bonds will fall.
b. money will fall.
c. bonds will rise.
d. stocks will fall.
e. real estate will fall.
____ 172. If the equilibrium interest rate is 4% but the current interest rate is 6%,
a. bond prices will rise.
b. money demand will decrease.
c. money demand will increase.
d. bond prices will fall.
e. the money supply will decrease. ____ 173. If the Fed wants to lower the interest rate, it will
a. buy bonds and decrease the money supply.
b. buy bonds and increase the money supply.
c. sell bonds and decrease the money supply.
d. sell bonds and increase the money supply.
e. sell bonds and decrease money demand.
____ 174. Many of the Fed’s actions wee aimed squarely at stopping the downward spiral of falling assets prices.
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This note was uploaded on 02/07/2014 for the course ECON 1020-01 taught by Professor Rahman during the Fall '12 term at Tulane.
- Fall '12