Ordinarily the money supply will decrease if a the

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Nature of Mathematics
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Chapter 11 / Exercise 29
Nature of Mathematics
Smith
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5. Ordinarily the money supply will decrease if: a. the Fed makes fewer loans at its discount window. b. the Fed sells securities on the open market. c. the Fed raises reserve requirements. d. all of the above. (d) 6. The money supply
7. Which of the following tools of monetary policy has the greatest impact?
8. An increase in the assets of Federal Reserve banks
9. Consumption spending should increase if
a. financial wealth decreases. b. reserve requirements decrease. c. interest rates increase. d. credit availability decreases. (d) 10. Generally, plant and equipment investment spending will decrease if
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Nature of Mathematics
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Chapter 11 / Exercise 29
Nature of Mathematics
Smith
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a. interest rates rise while inflation remains unchanged. b. inflation decreases while interest rates remain unchanged. c. reserve requirements rise. d. any of the above (d) 11. A decrease in the monetary base is related to 12. A decrease in reserve requirements will definitely cause 13. Sustained open market buying by the Fed will cause 14. An expansion in the U.S. money supply a. will increase domestic interest rates b. will cause the exchange value of the dollar to increase. c. will cause U.S. exports to increase. d. will cause U.S. imports to increase. (a) 15. If the money supply increases too rapidly 16. Unemployment should fall if

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