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 .

In
Keynesʹs
liquidity preference framework, if there is excess demand for money,
there is

Higher
government deficits ________ the supply of bonds and shift the supply
curve to the  


________,
everything else held constant.

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
________.

During
business cycle expansions when income and wealth are rising, the
demand for bonds  


________
and the demand curve shifts to the ________, everything else held
constant.

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


there
is excess ________ and the interest rate will ________.

Holding
everything else constant,  

If
gold becomes acceptable as a medium of exchange, the demand for gold
will ________ and  


the
demand for bonds will ________, everything else held constant.

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


________
and that of Treasury bills will ________.

An
increase in an assetʹs
expected return relative to that of an alternative asset, holding  


everything
else constant, ________ the quantity demanded of the asset.

Prices
and returns for ________ bonds are more volatile than those for
________ bonds,  


everything
else held constant.