Sort the following tools into increasing and decreasing the money supply.
Decrease the RR
Influence an Increase in the FFR
Increase the RR
Decrease the DR
(FED) Buy Bonds
Increase the DR
Influence a Decrease in the FFR
(FED) Sell Bonds
Increase the Money Supply
Decrease the Money Supply
Sort the following into expansionary and contractionary monetary policy.
Influence an Increase in the FFR
Increase the DR
Influence a Decrease in the FFR
(FED) Less Buying OMOs
Increase the RR
Decrease the RR
(FED) More Buying OMOs
Decrease the DR
Expansionary Monetary Policy
Contractionary Monetary Policy
Sort into the appropriate category
Qd of Money < Qs of Money
The Fed lowers the reserve requirement.
Nominal Interest Rates Rise
Banks raise ATM fees
The Fed does more purchasing OMOs
Deflation hits the US economy
The Fed influences an increase in the Federal Funds Rate.
Nominal Interest Rates Fall
Qd of Money > Qs of Money
The economy is booming and more households are finding employment
The Fed increases the discount rate
Credit cards increase their average percentage rates (APRs)
Supply of Money Increases
Supply of Money Decreases
Demand of Money Increases
Demand of Money Decreases
Shortage of Money
Surplus of Money