1.)Which of the flowing does NOT cause the money demand curve to shift?A change in the interest rateA change in the price levelA change in technology or expectationsA change in real GDP2.) People...

1.)Which of the flowing does NOT cause the money demand curve to shift?A change in the interest rateA change in the price levelA change in technology or expectationsA change in real GDP2.) People forgo interest and hold money because:They feel government bonds are too riskyInterest bearing checking accounts re a relatively recent developmentThere are no substitutes for moneyThe convenience of holding cash is worth more than the interest forgone3.) If the target rate of interest is higher than the current equilibrium interest rate, the FED will:Sell treasury bills in the open market, increase the supply of money, and lower the interest rate back to the target rate.Buy treasury bills in the open market, increase the supply of money, and lower the interest rate back to the target rate.Sell treasury bills in the open market, decrease the supply of money, and increase the interest rate back to the target rate.Buy treasury bills in the open market, decrease the supply of money, and increase the interest rate back to the target rate.4.) If the equilibrium interest rate in the money market is 5%, at an interest rate of 2%:Money demand is less than money suppliedMoney demanded is greater than money suppliedMoney demanded is equal to money suppliedIt is impossible to predict which is greater, money demanded or money supplied.5.) The federal funds rate is:Determined in the money market by the supply and demand for moneySet by congressDetermined in the real market by the aggregate supply and aggregate demand curvesThe interest rate that banks pay when they borrow directly from the Fed6.) If an economy is operating at an aggregate output level which is greater than its potential output level, the Fed may:Decrease government spendingConduct an open market purchaseLower the federal funds rate targetConduct an open market sale