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If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then
a. the money multiplier will decrease
b. the money multiplier will increase
c. the monetary base will decrease
d. the monetary base will increase
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Expected inflation can be estimated as
a. the return on a TIPS bond
b. the return on a Treasury bond
c. the return on a TIPS bond minus the return on a Treasury bond
d. the return on a Treasury bond minus the return on a TIPS bond
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A decrease in the expected return on stocks will
a. shift the demand curve for bonds leftwards
b. shift the demand curve for bonds rightwards
c. shift the supply curve for bonds leftwards
d. shift the supply curve for bonds rightwards
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Which of the following is part of M2?
a. Small time deposits
b. Money market mutual fundsc. Currency held by foreigners
d. All of the above
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