Monetary Policy Tools

Last updated about 6 years ago
10 questions
1

An easy/expansionary monetary policy is used to address what economic problem?

1

A tight/contractionary monetary policy is used to address what economic problem?

1

Who controls monetary policy?

1

The interest rate the Fed charges banks when they borrow from the Fed is called

1

The percentage that banks must set aside when customers deposit money in the bank is called

1

The buying and selling of government securities/bonds is called

1

Which of the following monetary policy tool combinations would be appropriate during a recession?

1

Which of the following monetary policy tool combinations would be appropriate during periods of inflation?

1

Increasing the money supply will cause interest rates to increase.

1

If the Fed buys bonds, lowers the reserve requirement, or lowers the discount rate then aggregate demand and real GDP will change in which of the following ways?