The
reduction of brokerage commissions for trading common stocks that
occurred in 1975  


caused
the demand for bonds to ________ and the demand curve to shift to the
________.

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 ( )

5. In Friedmanʹs modern quantity theory, velocity is procyclical because

4. Keynes hypothesized that the speculative component of money demand was primarily determined by the level of