Questions are attached.
When the Fed increases the reserve requirement, hanks lend of their deposits, which leads to a(n) in the money supply. O less; decrease 0 less; increase 0 more; increase 0 more; decrease Holding everything else constant, if the U.S. dollar falls against the Mexican peso: O U.S. goods will look cheaper to Mexico. O one peso buys fewer U.S. dollars. O Mexico's goods will look cheaper to the United States. O U.S. goods will look more expensive to Mexico.Question 2 of 10 Which function is one that pertains to the Federal Reserve System? I. conducting monetary policy II. examining and supervising commercial banks in the Fed regions III. providing liquidity to financial institutions O III only I, II, and III O I only O II onlyFigure: The Loanable Funds Model in the U.S. Market Interest rate Supply 4% EA Demand Quantity of loanable funds Refer to Figure: The Loanable Funds Model in the U.S. Market. If the actual interest rate is higher than 4% in the U.S. market, then the quantity supplied of loanable funds will be the quantity of loanable funds demanded. less than O equal to O unrelated to greater thanWhich group would supply dollars in the foreign exchange market? I. Americans who want to buy U.S. goods, services, and assets II. Americans who want to buy European goods, services, and assets III. Europeans who want to buy U.S. goods, services, and assets O I, II, and III O I only O II only III onlyQUESTION JU 01 20 The difference between GDP and GNP is that: O GNP includes the money supply. O GDP includes the money supply. O GDP includes international factor income. O GNP includes international factor income.The behavior of the financial accounts is determined in the international market. goods and services O loanable funds O stock O moneyQUESTION 12 01 20 The exchange rate is determined in the commodities markets. O False O TrueQuestion 2 of 20 > In the early twenty-first century, the United States had a current account: O deficit and a capital account deficit. O deficit. O surplus. O balance equal to zero.Question 3 of ID > Figure: The Market for Loanahle Funds [ll Interest rate {as} 0 200 400 600 800 1.000 1,200 Quantity of loanable funds {billions of dollars} Use Figure: The Market for Loanable Funds III. If the government in a closed economy nances decits by selling bonds and it decides to decrease defense spending by $200 billion, the decrease in government spending will encourage in additional private investment spending. 0 $400 billion 0 $20) billion 0 $100 billion 0 $10 billion Figure: Crowding Out Inherent late m: 3e" G1 02 Ga Quantity of Ioanabla funds Use Figure: Crowding Out. If the demand for loanable funds curve shifts to the right, the result will be a[n) in the interest rate and a(n} in the total amount of borrowing in the funds market. O decrease; decrease 0 decrease; increase 0 increase; decrease 0 increase; increase Figure: Changes in the Money Supply Interest rate, r S1 S2 6 4 D Q1 Q2 Quantity of money Refer to Figure: Changes in the Money Supply. If the supply of money shifts from S, to $2, the Federal Reserve must have Treasury bills in the open market. O bought O borrowed O sold O issued newSuppose that the Federal Reserve buys Treasury bills. We can expect this transaction to the money supply, Treasury bill prices, and interest rates. O increase; lower; lower O increase; raise; lower O reduce; increase; lower O reduce; reduce; raiseQuestion / Figure: International Capital Flows (a) U.S. (b) U.K. Interest Interest rate rate Supply Supply 6% 4 X 4% 2 Demand : Demand Quantity of loanable funds Quantity of loanable funds Refer to Figure: International Capital Flows. At an interest rate of 4%, the shortage of loanable funds available to borrowers will be satisfied by lenders. O British; U.S. O U.S.; British O U.S. or British; British or U.S. O British; worldwideQuestion & Of 20 Toyota's factory in San Antonio is an example of direct foreign investment. O True FalseAllempt Figure: The Loanable Funds Model in the U.S. Market Interest rate Supply 4% EA Demand Quantity of loanable funds Refer to Figure: The Loanable Funds Model in the U.S. Market. If the actual interest rate is less than 4% in the U.S. market, then the quantity supplied of loanable funds will be the quantity of loanable funds demanded. O greater than O equal to O unrelated to O less than
