When the Federal Reserve conducts open market purchases to increase bank reserves without trying to alter the interest rate that is already close to zero, the policy action is called

The supply curve of money shows, all other things unchanged, the

A) quantity of money supplied at each price of bonds. B) quantity of money supplied at each bond rate. C) quantity of money supplied at each interest rate. D) amount of money people supply at a specific interest rate.

Under the liquidity premium theory, a flat yield curve indicates that investors expect future short-term rates to

A) fall. B) rise. C) remain constant. D) either fall or remain constant.