Question
1.Investment spending is insensitive to changes in the interest rate and the SRAS curve is upward sloping. According to a monetarist, an increase in the
1.Investment spending is insensitive to changes in the interest rate and the SRAS curve is upward sloping. According to a monetarist, an increase in the money supply will __________ Real GDP. According to a Keynesian, an increase in the money supply will __________ Real GDP.
2.Suppose the Fed lowers its federal funds rate target.The Fed probably seeks to
lower the actual federal funds rate.
raise the actual federal funds rate.
leave unchanged the actual federal funds rate
3.With collateralized debt obligations (CDOs) buyers are purchasing _________ slices, and buyers of mortgage-backed securities (MBSs) purchase ___________ slices.
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