ANSWER ALL QUESTIONS. ANSWERS ONLY.

1. With an increase in the expected return for cryptocurrency

Question options:

	the price of bonds rises and the interest rate falls
	both the price of bonds and the interest rate falls
	the price of bonds fall and the interest rate rises
	both the price of bonds and the interest rate rises

2. With an increase in inflation expectations

Question options:

	both the price of bonds and the interest rate rises
	both the price of bonds and the interest rate falls
	the price of bonds fall and the interest rate rises
	the price of bonds rises and the interest rate falls

3. With a change in interest rates

Question options:

	Long-term bond prices will change the same amount as short-term bonds
	Long-term bond prices will change more than short-term bonds if inflation is high. Long-term bond prices will change less than short-term bonds if inflation is low
	Long-term bond prices will change more than short-term bonds
	Long-term bond prices will change less than short-term bonds

4. When the government issues bonds

Question options:

	the price of bonds fall and the interest rate rises
	both the price of bonds and the interest rate falls
	the price of bonds rises and the interest rate falls
	both the price of bonds and the interest rate rises

5. When the Federal Reserve increases the money supply

Question options:

	the liquidity effect predicts higher inflation while the fisher effect predicts lower inflation
	the liquidity effect predicts lower inflation while the fisher effect predicts higher inflation
	both the liquidity effect and the fisher effect predict lower inflation
	both the liquidity effect and the fisher effect predict higher inflation

6. When comparing monetary aggregates?

Question options:

	M1 is larger than M2 when prices are rising and M1 is less than M2 when prices are falling
	M1 is larger than M2 when interest rates are rising and M1 is less than M2 when interest rates are falling
	M1 is smaller than M2
	M1 is larger than M2

7. What is traded in the money market?

Question options:

	stocks
	foreign currency
	short-term debt securities
	electronic money