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Blanchard Chapter 4 (Money, English) Flashcards | StudBud
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Blanchard Chapter 4 (Money, English)
Blanchard Chapter 4 (Money, English)
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Answers
1
GDP and the interest rate influence money demand.
False
True
2
Assumption: θ=0.01 The central bank increases the monetray base by 10 units (dH=+10). Money supply increases by
1000
100
10
0.1
3
The money supply curve is...
a horizonal line.
downward sloping.
upward sloping.
a vertical line.
4
When the central bank increases money supply...
i constant; GDP up
i down; GDP constant
i down; GDP up
i up GDP down
5
When θ = 0.01, the money multiplier takes the value of 100.
False
True
6
The money demand curve is...
upward sloping.
a vertical line.
downward sloping.
a horizonal line.
7
When the GDP increases...
Money demand curve to the LEFT.
Money demand curve to the RIGHT.
Money supply curve to the LEFT.
Money supply curve to the RIGHT.
8
During the crisis (2012) the central bank increased the minimum reserve requirements.
True
False
9
When the interest rate increases money demand increases.
True
False
