Your loss from an increase in interest rates is ________, and your gain from a decrease in interest rates is ________, if you hold a two-year bond compared to holding a one-year bond

Which of the following is an example of the Fed making monetary policy?

A) Increasing government spending by $30 million B) Decreasing the tax rate on interest rate earnings C) Decreasing the discount rate to 2% D) Increasing subsidies to solar energy producers

If the great majority of shocks to our system arise from unpredictable shocks to money demand, the preferred tactic of monetary policy is targeting

a. reserves. b. interest rates. c. M2. d. reserves plus currency.