True or False The loanable fund market demand is the demand for consumption. () 2. An increase in the bond price increases the bond yield. () 3. An…

True or False 

The loanable fund market demand is the demand for consumption.

() 2. An increase in the bond price increases the bond yield.

() 3. An increase of interest rate increases the stock price.

() 4. Monopoly and monopsony affect the unemployment.

() 5. The open market operation is the changes in interest rate in open market.

() 6. The high reserve requirement increases money creation.

() 7. The money value and price level have the positive relationship.

() 8. The nominal interest rate is related to inflation.

() 9. An inflation tax is the tax put on inflation.

() 10. Government expenditure belongs to the aggregate demand.

() 11. 1973-1975 recession is due to aggregate demand shift.

() 12. 2001       recession is due to aggregate demand shift.

() 13. As potential GDP is smaller than actual GDP, recession occurs.

() 14. The velocity of money circulation is not increasing over time.

() 15. The multiplier effect has the adverse relation with marginal propensity to consume.

() 16. The crowding effect expands the multiplier effect.

() 17. A recession results in decrease of welfare program.

() 18. A recession and the tax are not realted.

() 19. The unemployment and inflation are in inverse relation.

() 20. The unemployment and inflation relation are related to aggregate demand.

() 21. A tariff deceases import

() 22. A quota decreases export.

() 23. A real exchange rate is not related to nominal exchange rate.

() 24. A purchasing power parity exchange rate is not related to nominal exchange rate.

() 25. A flexible exchange rate is not related to nominal exchange rate.

() 26. The trade deficit increases net capital inflow.

() 27. The export increases consumer surplus.