When discussing money demand we argued that people

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52.When discussing money demand, we argued that people tend to hold more money as the interest rate rises, allelse constant.A) TrueB) FalseCorrect Answer(s):False
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53.If the Fed conducts open market sales then the price of bonds should fall.
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54.According to our money demand / money supply analysis, an increase in GDP = Y, all else constant, will result in a rise in nominal interest rates.
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55.According to the percent change form of the quantity theory of money, if velocity falls by 10%, then the Fed, in order to achieve their dual mandate, should let the nominal money supply grow by 15%.
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56.A portfolio shock such that households want to hold less money, at any given interest rate, will result in the velocity of money falling.A) TrueB) FalseCorrect Answer(s):False
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57.Milton Friedman felt that high inflation was always caused by excessive money growth. In fact, he has been quoted as "Inflation is always and everywhere a monetary phenomenon."
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