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11.Decreasing interest rates increase financial wealth and encourage consumer spending.

 

12.An increase in the money supply should ultimately cause security prices to decrease.

 

13.Restrictive monetary policy in the United States may slow down net exports and GNP.

 

14.Monetarists think changing the money supply impacts economic units directly rather than just through interest rates.

 

15.Increasing interest rates increase wealth and encourage spending.

 

16.Easy monetary policy strengthens the dollar.

 

17.A prolonged “tight” monetary policy can be associated with falling bond prices.

 

18.Stable employment is one of the objectives of monetary policy.

 

19.There is definitely a tradeoff between stable prices and full employment.

 

20.Unexpected high levels of inflation aid debtors at the expense of lenders.

 

 

 

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