NEWEST UPDATE WITH
ACTUAL QUESTIONS AND
DETAILED VERIFIED ANSWERS
WITH RATIONALES (100%
CORRECT) //BRAND NEW!!
/ALREADY GRADED A+ WITH
GUARANTEED SUCCESS AFTER
DOWNLOAD (ALL YOU NEED TO
PASS YOUR EXAMS
If the nominal rate of interest is 2 percent and the expected inflation rate is -10 percent, the
real rate of interest is
a. 12 percent
b. 2 percent
c. 8 percent
d. 10 percent
12 percent
, The supply curve for bonds has the usual upward slope indicating that as price ________,
ceterus paribus, the _________ increases.
a. falls, quantity supplied
b. rises, supply
c. rises; quantity supplied
d. falls, supply
rises, quantity supplied.
When the inflation rate is expected to increase, the ________ for bonds falls, while the
___________ curve shifts to the right, everything else held constant.
a. demand, demand
b. supply, supply
c. demand, supply
d. supply, demand
demand, supply
The monetary base minus reserves equals
a. money supply
b. federal funds
c. checking deposits
d. currency in circulation
currency in circulation
Monetary Aggregates are
a. measures of the wealth of individuals
b. measures of the money supply reported by the Federal Reserve
c. never redefined since money never changes
d. reported by the treasury department annually.
measures of the money supply report by the Federal reserve
In the bond market, the bond demanders are the _______________, and the bond suppliers
are the ___________.
a. lenders, advancers
b. borrowers, advancers
c. borrowers, lenders