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. II I II The demand- for -money curve Responsible for Open Market Operations Current output below the full employment level of output Vertical investment curve Increase in money supply L__ __ _fr_ _1 Inverse relationship between interest rate and the quantity demanded of money Open market sale of U.S. government securities Recessionary gap The simple money multiplier falls, money supply declines, The Aggregate Demand curve shifts to the left, the economy contracts The discount rate FOMC The money market is in liquidity trap . I II II money supply has no effect on the interest rate The basic quantity equation of money Contractionary monetary policy The Federal reserve increases the required reserve ratio Net Worth The interest rate charged on loans to banks from the Federal Reserve 10. 11. 12. 13. 14. 15. 16. The money market is in liquidity trap Money supply x Velocity = Price level x Real GDP Change in interest rate has no effect on the volume of investment in the economy The difference between Assets and Liabilities Upward sloping 1 ) ) = F: where rrr stands for the required reserve ratio Action that requires congressional approval FDIC The money rate Nominal GDP Money supply