If
housing prices are expected to increase, then, other things equal,
the demand for houses will  


________
and that of Treasury bills will ________.

8. The discount rate is

7.If the Fed expects currency holdings to rise, it conducts open market ______to offset the expected _______in reserves.

6. The two types of open market operations are

5. Open market sales shrink _____ thereby lowering______.

4. In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirementthe demand of reserves and causes the federal funds interest rate to , everything else held constant.

3. The Federal Reserve usually keeps the discount rate

2. Everything else held constant, when the federal funds rate is ______the interest rate paid on reserves, the quantity of reserves demanded rises when the federal funds rate ________.

1.The Fed uses three policy tools to manipulate the money supply: open market operations, which affect the ; changes in borrowed reserves, which affect the ; and changes in reserve requirements, which affect the .

5. Everything else held constant, if aggregate output is to theof the IS curve, then there is an excessof goods which will cause aggregate output to fall. ( )

4. The _____traces out the points for which total quantity of goods produced equals total quantity of goods demanded. ( )