Resources are also known as ________

a)     minerals

b)     land and capital

c)     stocks, bonds and other financial instruments

d)     inputs

The Fed is __________ the U.S. Government for its finances.

a)      substantially dependent on

b)      minimally dependent on

c)      totally dependent on

d)      independent of

The federal funds rate is the interest rate on __________.

a)      loans from the Fed to banks

b)      loans from banks to the Fed

c)      intrabank loans

d)      interbank loans

According to the quantity theory of money, an increase in the money supply leads to __________.

a)      a decrease in the aggregate demand curve

b)      an increase in the aggregate demand curve

c)      a shift in of the long-run aggregate supply curve

d)      an increase in the short-run aggregate supply curve

Monetarism argues that a looser monetary policy creates __________.

a)      the possibility for long-run output growth

b)      deflation

c)      the possibility for short-run output increase

d)      the possibility for long run decrease in nominal GDP

An interest rate below the equilibrium interest rate would cause which of the following?

a)      excess supply of goods

b)      excess supply of money

c)      a decrease in the demand for bonds

d)      excess demand of money

A person holding money in case of an emergency is following the _________ motive.

a)      precautionary

b)      speculative

c)      scared

d)      transaction

Higher interest rates __________.

a)      are preferred by firms, but not households

b)      slow economic growth

c)      are preferred by households, but not firms

d)      increase consumer spending