Question: For each of the following you only need to provide a one or two - word response (choose one of the underlined phrases for each statement).

a) Historically in the United States southern interests typically did or did not support the Second Bank of the United States.

b) According the political business cycle theory, there would be a tendency to increase/decrease the money supply before an election.

c) All else the same, an increase in Treasury deposits to the Fed will increase/decrease the monetary base.

d) Over the course of 1931 - 1934, the currency ratio in the United States increased/decreased.

e) Targeting non - borrowed reserves/federal funds rate will tend to increase the volatility of interest rates in the economy.

f) Open market operations to offset a change in reserves demand would be an example of a defensive/dynamic open market operation.

g) If inflation becomes more sensitive to changes in the output gap, this likely means that beta is higher/lower.

h) Implementing inflation targeting is thought to increase/decrease the transparency of the Central Bank.