The questions are in the word doc most are conceptual I would like some explanations for the answers given thanks.

Question 11 pts When a consumer withdraws $200 from her savings account and deposits the $200 into her checking account, M1 increases by $200 and M2 remains unchanged. M1 and M2 both fall by $200. M1 is inchanged but M2 decreases bu $200. M1 and M2 both increase by $200. Flag this Question Question 21 pts The demand for real money balances is a decreasing function of real income housing prices the term spread the nominal interest rate. Flag this Question Question 31 pts The demand for real money balances is an increasing function of the nominal interest rate. the overall level of prices in the economy. the expected rate of inflation. real income Flag this Question Question 41 pts Consider an economy where nominal money supply is M = 10 and nominal money demand is given by the expression: Md= 3y 100i If the price level is P = 10 and real income is y = 5, what is the equilibrium level of nominal interest rates, i? 5% 8% 3% 6% Flag this Question Question 51 pts Consider again an economy where the nominal money demand is given by the expression: Md= 3y 100i The price level is P = 10 and real income is y = 5. Suppose the central bank wants to push short term nominal interest rates to 7% What must be the level of the nominal money supply in this economy? 12 4 8 6 Flag this Question Question 61 pts If there is a financial panic and increased uncertainty about the returns in the stock market and bond market, what is the likely effect on money demand The overall effect is ambiguous Money demand declines Money demand declines first, then rises when inflation increases Money demand rises Flag this Question Question 71 pts If the quantity of money demanded exceeds the quantity of money supplied, then the quantity of nonmonetary assets demanded exceeds the quantity supplied the quantity of nonmonetary assets supplied exceeds the quantity demanded the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal you can make no conclusions about the relative supply and demand of nonmonetary assets Flag this Question Question 81 pts The velocity of M1 is usually higher than the velocity of M2, except in very severe recessions. the reciprocal of the velocity of M2. is always lower than the velocity of M2. usually higher than the velocity of M2. Flag this Question Question 91 pts Suppose velocity is 3, real output is 9000, and the price level is 1.5. What is the level of real money demand in this economy? 30,000 3000 6000 2000 Flag this Question Question 101 pts Suppose the interest rate on a oneyear bond today is 6% per year, the interest rate on a oneyear bond one year from now is expected to be 4% per year, and the interest rate on a oneyear bond two years from now is expected to be 3% per year. Assuming risk neutral investors, what is the interest rate today on a twoyear bond? 6% 3% 5% 4%