When
the interest rate on a bond is ________ the equilibrium interest
rate, in the bond market  


there
is excess ________ and the interest rate will ________.

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. ( )

3. When the interest rate rises,_______ ( )

2. Aggregate output is related to autonomous consumer expenditure, and is related to the level of taxes. ( )

1.Keynes reasoned that consumer expenditure is most closely related to ( )