When people suddenly want to buy something, supply increases

Examples of off-balance-sheet activities include

A) trading activities. B) extending loans to depositors. C) borrowing from other banks. D) selling negotiable CDs.

If expectations are formed rationally, wages and prices are completely flexible in the short run and policy is correctly anticipated, increases in aggregate demand will

A) cause lower short-run price level increases than a Keynesian would expect. B) cause higher short-run price level increases than a Keynesian would expect. C) not impact the general price level. D) produce both increases and decreases in the price level at different times.