Rising expenditures (in dollars) must be accompanied by what?

A. more money or higher velocity

B. more money or higher employment

C. less money or lower velocity

D. less unemployment or higher velocity

The correct answer is A

Who provides sufficient reserves for the economy?

A. the Treasury

B. Congress

C. Congress and the president together

D. the Federal Reserve

E. the Department of Energy

The correct answer is D

An increase in reserves will often cause short-term interest rates to

A. fall.

B. rise.

The correct answer is A

A primary purpose of monetary policy today is to

A. stabilize the price of gold.

B. control the level of economic production.

C. stabilize interest rates.

D. stabilize the price level.

The correct answer is D

What largely determines the amount of money depository institutions can create?

A. the volume of reserves

B. the price of gold

C. the national debt

D. the amount of currency and coin in circulation

The correct answer is A