1) Ifiis the yield to maturity of a fixed-payment loan the

value of the loan today equals the present value of the loan payments discounted at ratei

value of the loan today equalsitimes the sum of the values of all the loan payments

iequals the present value of the loan payments

value of the loan today equals the sum of the values of the loan payments

2) An increase in price level

shifts the short-run aggregate supply curve up and to the left

shifts the long-run aggregate supply curve to the left

shifts the short-run aggregate supply curve down and to the right

results in a movement along the short-run aggregate supply curve rather than a shift in the short-run aggregate supply curve

3) Unlike brokers, dealers

are taxed by the federal government but not by state and local governments

buy and sell both stocks and bonds

are unregulated by the federal government

hold inventories of securities

4) In 1980, the Depository Institutions Deregulation and Monetary Control Act

eliminated reserve requirements on demand deposits at S&Ls

established uniform reserve requirements for all depository institutions

gave the Board of Governors authority over reserve requirements

established that rural banks would have lower reserve requirements than urban banks

5) The M2 aggregate

is the best definition of definitive money

includes M1 plus large-denomination time deposits

includes M1 plus short-term investment accounts

equals currency plus checking account deposits at commercial banks