Ashford ECO 203 Week 4 Quiz Answers - 2019

Document Content and Description Below

1. Money demand is __________ 2. Marla is a macroeconomist who believes that monetary policy is not very effective in changing aggregate demand, output, and employment. Marla is most likely a________... __ economist. 3. What is the function of the Federal Open Market Committee (FOMC), the most powerful group within the Fed 4. If Clarice deposits $2,000 in her bank, then her bank’s __________. 5. Which of the following is included in M2 but is NOT in M1? 6. What occurred in October 1979 that was later labeled the “Saturday night special”? 7. The Fed’s selling of bonds on the open market will __________. 8. Suppose reserve ratio (rr) = 0.50. What, then, is the deposit multiplier? 9. If the Fed creates excess bank reserves, what are banks likely to do? 10. Advika is a resident of India who exports hand-dyed fabrics to other nations. Since India has an exchange control system, what does this mean for Advika? [Show More]

Last updated: 1 year ago

Preview 1 out of 4 pages