100%(4)4 out of 4 people found this document helpful
This preview shows page 13 - 17 out of 20 pages.
1 ptsQuestion 27If the interest rate is below the equilibrium interest rate, then the quantity __________ ofmoney exceeds the quantity __________ of money, and there is a __________ ofmoney.supplied; demanded; shortagesupplied; demanded; surplusdemanded; supplied; shortagedemanded; supplied; surplus1 ptsQuestion 28If M1 is $1,200 billion, currency held outside banks is $400 billion, and traveler's checksis $10 billion, then smalldenomination time deposits equalThere is not information to answer the question.
11/20/2017Quiz: Macro_Ex3_Review14/231 ptsQuestion 29Fiscal policy may not work as policymakers intend it to work because of1 ptsQuestion 30The economy is in a recessionary gap and there is evidence that the economy is in aliquidity trap. In this situation, a Keynesian is likely to advocate the use of __________policy.1 ptsQuestion 31The economy is in the horizontal portion of the AS curve, investment spending is interestinsensitive and there is no liquidity trap. According to the Keynesian transmissionmechanism, if the money supply increases the interest rate will __________, investment
11/20/2017Quiz: Macro_Ex3_Review15/23fall; fall; left; fallrise; drop; left; fallfall; remain unchanged; not shift; not changerise; remain unchanged; not shift; not changenone of the abovespending will __________, the AD curve will __________, and Real GDP will__________.1 ptsQuestion 32When a bank makes a loan to one of its customers, to the bank the loan is classified asan asset.a liability.neither an asset nor a liability.an asset in some cases and a liability in other cases, depending on the type of loan.1 ptsQuestion 33If reserves increase by $7 million and the required reserve ratio is 12%, what is theresulting change in checkable deposits (or the money supply), assuming that there are nocash leakages and that banks hold zero excess reserves?
11/20/2017Quiz: Macro_Ex3_Review16/23$58.33 million1 ptsQuestion 34A bank has $7 million in checkable deposits and $1.2 million in total reserves. If therequired reserve ratio is 10 percent, then the bank has1 pts