Suppose you cash in a Certificate of Deposit (a small time deposit) to acquire the traveler's checks you'll need for your vacation. What happens to M1 and M2?

A restriction on imports is likely to reduce further restrictions on trade

Indicate whether the statement is true or false

If the nominal interest rate is less than the equilibrium nominal interest rate determined in the money market, then households and firms

A) are holding less money than they prefer. B) are holding more money than they prefer. C) expect real GDP to increase. D) expect the price level to increase. E) expect the nominal interest rate to decrease.