1. The investment demand curve is downward sloping.
A. True
B. False
2. The money demand curve can shift due to buying bonds.
A. True
B. False
3. The money supply curve can shift due to technology.
A. True
B. False
4. Monetary policy can affect AD.
A. True
B. False
5. Monetary policy can affect investment demand.
A. True
B. False
6. In the long run money is neutral.
A. True
B. False
7. In the short run an expansionary monetary policy raises the interest rate.
A. True
B. False
8. The MD curve is upward sloping.
A. True
B. False
9. The money supply curve is downward sloping.
A. True
B. False
10. Banks determine the supply of money.
A. True
B. False