DTQT

Multiple Choice

If the Fed is worried about inflation and wants to raise the interest rate, in the short run it can

• A) decrease the demand for money.

• B) increase the demand for money.

• C) decrease the quantity of money.

• D) increase the quantity of money.

Multiple Choice

Who is this man?

• Warren Buffett

• Steve Jobs

• Charlie MungerMunger

• Jesse Livermore

Multiple Choice

Other things the same, if the Fed increases the quantity of money, the supply of money curve shifts

• rightward and the nominal interest rate increases.

• leftward and the nominal interest rate decreases.

• rightward and the nominal interest rate decreases

• leftward and the real interest rate increases

Multiple Choice

what is FED stand for?

• Federal Resource Department

• Federal Resource System

• Federal Reserve Department

• Federal Reserve System

Multiple Choice

The primary policy tool used by the Fed to meet its monetary policy goals is:

• changing the discount rate

• open market operations

• changing reserve requirements

• changing bank regulations.