Which function is one that pertains to the Federal Reserve System?

I. collecting corporate income tax

II. setting personal income tax rates

III. holding bank reserves

A.I only

B.II only

C.III only

D.I, II, and III

The money demand curve is _____ because a lower interest rate _____ the opportunity cost of holding money.

A.upward sloping; increases

B.downward sloping; increases

C.upward sloping; decreases

D.downward sloping; decreases

contractionary monetary policy causes___in the price level in the short run and ___ in the price level in the long run

no change, a decrease

a decrease; a decrease

a decrease; no change

no change; no change