Please answer all 3 thank you!! The asset demand for money is Question 43 option

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Please answer all 3 thank you!!

The asset demand for money is

Question 43 options:

greater at low interest rates, because the opportunity cost of holding money is low.

greater at high interest rates as investors can earn more on their investments.

lower at low interest rates, because the opportunity cost of holding money is high.

greater at low interest rates, because the opportunity cost of holding money is high.

If the Fed sells U.S. government securities , the

Question 44 options:

money supply increases, and the money supply curve shifts to the left.

money supply decreases, and the money supply curve shifts to the left.

money supply decreases, and the money supply curve shifts to the right.

money supply increases, and the money supply curve shifts to the right.

The Federal Open Market Committee engages in contractionary monetary policy by

Question 45 options:

creating excess reserves.

buying bonds.

selling bonds.

lowering interest rates.

greater at low interest rates, because the opportunity cost of holding money is low.

greater at high interest rates as investors can earn more on their investments.

lower at low interest rates, because the opportunity cost of holding money is high.

greater at low interest rates, because the opportunity cost of holding money is high.

If the Fed sells U.S. government securities , the

Question 44 options:

money supply increases, and the money supply curve shifts to the left.

money supply decreases, and the money supply curve shifts to the left.

money supply decreases, and the money supply curve shifts to the right.

money supply increases, and the money supply curve shifts to the right.

The Federal Open Market Committee engages in contractionary monetary policy by

Question 45 options:

creating excess reserves.

buying bonds.

selling bonds.

lowering interest rates.

Explanation / Answer

43) Correct answer is greater at low interest rates, because the opportunity cost of holding money is low. This is because interest rate is the opportunity cost of holding money so the opportunity cost is low when the interest rate is lower. This increases the money demand

44) Correct answer is money supply decreases, and the money supply curve shifts to the left. When securities are sold in open market operations, money supply is reduced due to a decline in bank reserves

45) Correct answer is selling bonds. Contractionary monetary policy is the policy of reducing the momem supply.

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