Time Remaining

$1$

Multiple Choice

$1$ point

If overall inventories rise in a month because of unplanned inventory investment, MOST likely:

sales were above forecasts.

the accelerator principle was contradicted.

inventory investment is negative.

the economy is slowing down.

$2$

Multiple Choice

$1$ point

Suppose that a typical basket of goods is now more expensive than it used to be$.$ All else equal, we would expect:

a downward movement along a fixed money demand curve.

the demand for money to shift inward.

an upward movement along a fixed noney demand curve.

the demand for money to shift outward.

$3$

Multiple Choice $1$ point

Which of the following is a tool used by the Federal Reserve to conduct monetary policy?

buying and selling corporate bonds

changes in the prime rate

buying and selling federal government bonds

issuing new government bonds and retiring old ones