WorksheetsAP Macro Graph Practice I: Money Market and Loanable Funds
Total questions: 15
Worksheet time: 13mins
This shift could occur with
an increase in bank lending.
the purchase of securities in the open market by the Fed.
a decrease in the discount rate.
an increase in the Federal Funds rate.
a decrease in the reserve ratio.
This shift could be caused by
an increase in government spending.
a decrease in deficit spending.
an increase in the discount rate.
the net export effect.
a decrease in the discount rate.
A shift from MD1 to MD2 could be caused by
customers wishing to hold more cash and use credit cards less.
a decrease in the discount rate.
an open market operation sale of bonds to the Fed.
the GDP falling.
an open market operation purchase of bonds by the Fed.
To decrease the equilibrium interest rate to 8% the Fed could
sell bonds.
raise the discount rate.
raise the Federal Funds rate.
lower the reserve requirement.
decrease the GDP.
To raise the interest rate to 12% the Fed could
buy bonds.
increase the discount rate.
decrease the reserve ratio.
decrease the nominal interest rate.
decrease the Federal Funds rate.
This shift could have been caused by
an increase in the discount rate.
people wanting to hold more money.
increase in GDP.
decrease in credit card fees.
the Fed sells bonds.
A decrease in the money supply to MS2 would cause
the nominal interest rate to rise to .8
the nominal interest rate to remain the same
the quantity of money to rise to 500
the nominal interest rate to fall to 0.25
a fixed quantity of money.
The shift in the graph could be caused by
a recession.
government deficit spending.
an increase in savings.
positive feelings about the future of the economy.
the Fed selling securities in an open market operation.
The shift in the graph could be caused by
an increase in the Federal Funds Rate.
the government running a budget deficit.
poor expectations of the future of the economy.
an increase in household savings.
a lowering of default risk.
A movement from D3 to D2 could be caused by
an increase in personal wealth.
an increase in the money supply.
a negative view of the future of the economy.
a decrease in household savings.
a government budget surplus.
A movement from D1 to D3 could be caused by
an elimination of default risk.
a decrease in household savings.
an increase in the desire of companies to invest.
poor expectations of the economy in the future.
a government budget surplus.
The shift on the graph could be caused by
a lowering of default risk on loans.
an increase in the desire of companies to invest.
positive expectations about the future of the economy.
a government budget deficit.
a decrease in household savings.
The shift in the graph could be caused by
the crowding out effect.
positive expectations about the future of the economy.
an increase in government budget deficit spending.
a decrease in consumer wealth.
a decrease in household savings.
The shift in the graph could be caused by
an decrease in the federal funds rate.
a lowering of the discount rate.
a government budget surplus.
a decrease in household savings.
an increase in positive opinions on the economic future.
The shift in the graph could be caused by
the Federal Reserve increases the discount rate.
the Federal Reserve makes an open market sale of securities (bonds).
the government increases spending without a corresponding increase in taxes.
the Federal Reserve makes an open market purchase of securities (bonds).
