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ECO316 / ECO 316 / Week 4 Chapter 23 The Demand for Money Quiz

ECO316 / ECO 316 / Week 4 Chapter 23 The Demand for Money Quiz

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ECO 316 Week 4 Chapter 23 The Demand for Money Quiz
ECO 316 Week 4 Chapter 23 The Demand for Money Quiz

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ECO316 / ECO 316 / Week 4 Chapter 23 The Demand for Money Quiz Description:
SOME QUESTIONS INCLUDE:
Which of the following central banks continues to emphasize the growth of the money supply in its conduct of monetary policy? A)The Fed B)ECB C)Both the Fed and ECB D)Neither the Fed nor the ECB Which of the following statements is true concerning the velocity of M1? A)It declined during most of the period from the late 1940s to 1980, but rose during the 1980s. B)It has increased during most of the period since the late 1940s. C)It has been roughly constant since the late 1940s. D)It declined during the 1980s The quantity theory of money A)included the interest rate, but did not include income as a factor in the demand for money. B)included income, but did not include the interest rate as a factor in the demand for money. C)did not include either income or the interest rate as factors in the demand for money. D)included both income and the interest rate as factors in the demand for money. In the Baumol-Tobin view, a decrease in interest rates will cause individuals to hold A)larger money balances, and velocity will increase. B)larger money balances, and velocity will decrease. C)smaller money balances, and velocity will increase. D)smaller money balances, and velocity will decrease According to Keynes, if the interest rate on bond falls, but aggregate income doesn't change, A)the demand for money will decrease. B)velocity will decrease. C)velocity will increase. D)the price level will decrease.

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