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True or False
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1
The transactions demand for money is determined by how much money people need.
A)True
B)False
2
The quantity of asset demand for money that people wish to hold increases as the rate of interest falls.
A)True
B)False
3
The interest rate is determined by savings and investment.
A)True
B)False
4
An interest rate above equilibrium will lead to a surplus of money.
A)True
B)False
5
One way that the Bank of Canada can increase the money supply is to purchase bonds in the open market.
A)True
B)False
6
The biggest asset on the balance sheet of the Bank of Canada is notes in circulation.
A)True
B)False
7
Contractionary monetary policy will result in a rightward shift in the AD curve.
A)True
B)False
8
An increase in money supply, according to Keynes, will cause investment and real GDP to increase.
A)True
B)False
9
The velocity of money refers to the number of times a particular product is bought and sold in the period of a year.
A)True
B)False
10
The equation of exchange is: MV = PQ.
A)True
B)False





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