If the central bank follows a monetary policy in which it maintains a fixed interest rate, then
a. the LM curve will get steeper.
b. the IS curve will get steeper.
c. the LM curve will become vertical.
d. the LM curve will become horizontal.
e. none of the above.
D
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If we compare the U.S. GDP and the Chinese GDP
A) real GDP per person is about the same in the two countries. B) U.S. real GDP per person is less than China's real GDP per person once we adjust for currency differences. C) China's real GDP per person is less than real GDP per person in the United States. D) real U.S. GDP per person was much larger than China's real GDP per person when purchasing power parity prices are used but is less than China's real GDP per person when exchange rate prices are used.
The Federal Reserve float is
A) items in process of collection - deferred credit items. B) items in process of collection + deferred credit items. C) deferred credit items - items in process of collection. D) deferred credit items + items in process of collection.