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Question
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the ________ of reserves which causes the federal funds rate to fall, everything else held constant.A. increases; supply
B. increases; demand
C. decreases; supply
D. decreases; demand
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
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B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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B. rapidly growing money supplies.
C. falling money supplies.
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B. banks.
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A. consumption function
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An autonomous increase in money demand, other things equal, shifts the ________ curve to the ________.
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Q:
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Q:
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C. public choice theory.
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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Q:
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Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
Q:
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A. increase; increase
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Q:
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A. An increase; appreciate
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B. right; depreciate
C. left; appreciate
D. left; depreciate