. Which of the following are included in expansionary monetary policy?

.

Which of the following are included in expansionary monetary policy? (Select all that are correct)

increase discount rate

increase federal funds rate

increase reserve requirement

buy bonds

decrease discount rate

decrease reserve requirement

decrease federal funds rate

sell bonds

2.

If the Federal Reserve would like to correct a recessionary gap, it would

increase the discount rate.

increase the reserve requirement.

conduct an open market sale.

conduct an open market purchase.

increase the federal funds rate.

3.

Which of the following reflects the order of operations when the Fed buys bonds on the open market?

money supply increases, interest rates decrease, investment spending increases, AS shifts right.

money supply decreases, interest rates increase, investment spending decreases, AD shifts left.

money supply increases, interest rates increase, investment spending increases, AD shifts right.

money supply decreases, interest rates increase, investment spending decreases, AS shifts left.

money supply increases, interest rates decrease, investment spending increases, AD shifts right.

4.

If interest rates increase from 8% to 9½%, we would expect to see

an increase in the demand for money.

a decrease in the demand for money.

an increase in the quantity of money demanded.

a decrease in the quantity demanded of money.

no change in the demand for money.

5.

If the Fed enacts the proper policy to solve the problem in the economy illustrated in the graph above, then the money supply would

increase, interest rates would increase, investment spending would decrease, and AD curve would shift left.

increase, interest rates would decrease, investment spending would increase, and AD curve would shift left.

decrease, interest rates would increase, investment spending would decrease, and AD curve would shift right.

decrease, interest rates would decrease, investment spending would increase, and AD curve would shift left.

decrease, interest rates would increase, investment spending would decrease, and AD curve would shift left.

6.

If inflation increased to 4% and unemployment was listed at 8%, which of the following policies would an economist most likely recommend using?

Decrease the reserve requirement and buy bonds.

Increase defense spending and increase the discount rate.

Increase personal income taxes and sell securities bonds.

Decrease funding for road projects and decrease the discount rate.

Sell bonds and decrease personal income taxes.

7.

If the Federal Reserve conducts easy money policy to expand the money supply, then

nominal interest rates will decrease and investment spending will increase.

nominal interest rates will decrease and investment spending will decrease.

nominal interest rates will decrease and price level spending will decrease.

nominal interest rates will increase and price level spending will increase.

nominal interest rates will increase and investment spending will decrease.

8.

Monetary policy is made by which part of the Federal Reserve?

the Board of Governors.

the Federal Open Market Committee.

the Federal Securities Commission.

the Chairman of the Fed.

the Securities and Exchange Commission

9.

If the Federal Reserve increases the discount rate, how are interest rates and real GDP affected? 

Interest Rates / Real GDP

Increase / Decrease

Increase / Increase

Decrease / Decrease

Decrease / Increase

Decrease / No change

10.

If the economy is suffering from inflation, the Federal Reserve should

buy bonds and raise the discount rate.

buy bonds and lower the discount rate.

sell bonds and raise the reserve requirement.

sell bonds and lower the reserve requirement.

sell bonds and lower the discount rate.

11.

Which of the following reflects the order of operations when the Fed lowers the discount rate?

money supply increases, interest rates decrease, investment spending increases, AS shifts right.

money supply decreases, interest rates increase, investment spending decreases, AD shifts left.

money supply increases, interest rates increase, investment spending increases, AD shifts right.

money supply decreases, interest rates increase, investment spending decreases, AS shifts left.

money supply increases, interest rates decrease, investment spending increases, AD shifts right

Description







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10