1

The general shape of the aggregate supply curve of an economy is mainly a reflection of changes in the:

Group of answer choices

supply of money.

supply of resources in the economy.

price level in the economy.

relative prices of goods and services.

2

If a person sells their shares of a stock and uses the funds to open a time deposit account of $50,000 at a bank, then:

Group of answer choices

the bank reserves will decrease.

the M1 money supply will increase.

the required reserve ratio will increase.

the M2 money supply will increase.

3

If the Fed wanted to follow a more expansionary monetary policy, which of the following actions should it take?

Group of answer choices

Increase the interest rate paid on the excess reserves held by commercial banks.

Purchase additional U.S. securities and other assets.

Extend fewer loans to commercial banks.

Increase the reserve requirements imposed on commercial banks.