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.Management Sciences
Category: Money, Interest Rates And Output
When the money supply increase ?
A. the economy moves up the LM curve
B. The LM curves shifts to the left
C. The economy moves down the LM curve
D. The LM curve shift to the right
The monetary base is ________ and _________?
A. bank deposits, building society deposits
B. Currency in circulation, banks cash reserves
C. retail sight deposits building society deposits
D. retail deposits, wholesale deposits
An item designated as money that is intrinsically worthless is ?
A. precious metals
B. commodity money
C. fiat money
D. barter items
Which of the following activities is one of the responsibilities of the Bank of England to the banking system ?
A. Assisting Banks that are in a difficult financial position
B. Auditing the various agencies and department of the government
C. Loaning money to other countries that are friendly to the UK.
D. Issuing new bonds to finance the PSBR.
If banks and the private sector decide to hold less cash the money multiplier will be ?
A. Unchanged
B. Larger
C. Smaller
D. Unstable
Which of the following events will lead to an increase in the demand for money ?
A. An increase in the interest rate
B. An increase in the level of aggregate output
C. A decrease in the price level
D. An increase in the supply of money
Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?
A. flat; steep
B. flat; flat
C. steep; flat
D. steep; steep
The equilibrium level of aggregate output is determined in ?
A. the goods and labor markets.
B. the goods market
C. the money markets
D. the money and labor market
For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?
A. decrease the money supply
B. increase the money supply
C. increase the demand for money
D. decrease the demand for money
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