Answer ALL questions and provide reasons to support your answer.

1.When Patty uses money to buy her lunch, she is showing the use of money as a "store of value."

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Reason:

2.The desired reserve ratio helps determine the amount of money banks can create.

Answer:

Reason:

3.If the Central Bank carries out an open market operation and sells U.S. government securities, the federal funds rises and the quantity of money decreases.

Answer:

Reason:

4.If the Central Bank sells bonds in the open market, net exports will increase.

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Reason:

5.In the short run, the Central Bank's actions to fight inflation shift the aggregate demand curve leftward.

Answer:

Reason: