From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left The demand-for -money curve A. FOMC + Contractionary monetary policy B. Recessionary gap * Current output below the full employment level C. The money rate of output D. The difference between Assets and Liabilities The Federal reserve increases the required E. Change in interest rate has no effect on the volume reserve ratio of investment in the economy The interest rate charged on loans to banks F. Upward sloping from the Federal Reserve G. The discount rate # Responsible for Open Market Operations H. FDIC Increase in money supply has no effect on the 1. Money supply X Velocity = Price level X Real GDP interest rate J. Action that requires congressional approval * The basic quantity equation of money K. ; where or stands for the required reserve ratio * Vertical investment curve $ Net Worth L. Inverse relationship between interest rate and the quantity demanded of money M. Open market sale of U.S. government securities N. The simple money multiplier falls, money supply declines, The Aggregate Demand curve shifts to the left, the economy contracts O. The money market is in liquidity trap P. _Nominal GDP Money supply