Fed & Monetary Policy (#1) 2024/25)

Front

Expansionary (easy) money policy

Back

Increases the nations money supply

Front

Contractionary (tight) money policy

Back

Decreases the nations money supply

Front

Which policy would help lower inflation? Options: Expansionary (easy money), Contractionary (tight money)

Back

Contractionary (tight money)

Front

Which policy would help lower unemployment? Options: Expansionary (easy), Contractionary (tight)

Back

Expansionary (easy)

Front

During a recession, the Fed should use...

Back

an expansionary policy (easy money)

Front

Which of the following scenarios would cause the interest rates to decrease?
Decreasing government spending,
Increasing the supply of money,
Decreasing the supply of money,
Selling bonds to investors

Back

Increasing the supply of money

Front

Lowering interest rates to stimulate the economy is called:

Back

Easy Money (Expansionary)

Front

Raising interest rates to slow down the economy (and inflation) is called

Back

Tight Money (Contractionary)

Front

Which of the following scenarios would cause interest rates to increase? Decreasing government spending, increasing the money supply, decreasing the money supply, decreasing taxes

Back

decreasing the money supply

Front

The amount a lender charges a borrower, expressed as a percentage. Reflect the cost to borrow money & repay it

Back

interest rate