Other things being constant an increase in nominal GDP will generally increase

Other things being constant an increase in nominal

  • Utah State University
  • ECON 102
  • Notes
  • Amanda.Miller
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20.Other things being constant, an increase in nominal GDP will generally increase the demand for money. PTS:1MULTIPLE CHOICE1.All decisions of the Fed are subject to approval by:
PTS:1 2.The Federal Reserve banks are owned by: PTS:1 3.Decisions regarding purchases and sales of securities by the Fed are made by: PTS:1 4.Which of the following is nota function of the Federal Reserve System? a.limiting the national debtb.setting the required reserve ratio for the deposit holdings of depository institutionsc.buying and selling government bonds to control the size and growth rate of the money supplyd.controlling inflationANS: APTS:1 5.If inflation is the major problem in the economy, which of the following would be an appropriate monetary policy response? PTS:1 6.If inflation is the major problem in the economy, which of the following would be an appropriate monetary policy response? PTS:1 7.The equation of exchange states that: PTS: 1 8. In the equation of exchange, PQ represents:
a.the dollar value of all final goods and services sold in a country in a given year.b.the price index times nominal GDP.c.real GDP.d.the price level times the velocity of moneyANS: APTS:1 9.Which of the following is a definition of velocity? V)PTS:1

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