economics 1020

A true b false 175 many economists thought the fed

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Unformatted text preview: lse. ____ 175. Many economists thought the Fed should have lowered the federal funds rate less aggressively in late 2007 and throughout 2008. a. True b. False. ____ 176. Which of the following would lead to a rightward shift of the money demand curve? a. A decrease in the price level b. A decrease in output c. An open market sale of bonds by the Fed d. An increase in the price level e. An open market purchase of bonds by the Fed. ____ 177. In the aggregate demand-aggregate supply model, an increase in the price level will a. increase money demand, raise the interest rate, reduce aggregate expenditure, and decrease equilibrium real GDP b. decrease money demand, lower the interest rate, increase aggregate expenditure, and increase real GDP c. increase the money supply, lower the interest rate, increase aggregate expenditure, and increase real GDP d. decrease the money supply, raise the interest rate, reduce aggregate expenditure, and decrease real GDP e. not change money supply, money demand or the interest rate, but will shift the aggregate demand curve to the right ____ 178. An increase in the price level will lead to which of the following sequences? a. The money...
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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.

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