Fed & Monetary Policy (#1) 2024/25

Front

Easy (expansionary) money policy

Back

Increases the nations money supply

Front

Tight (contractionary) money policy

Back

Decreases the nations money supply

Front

Which policy would help lower inflation? Easy money (expansioanry), Tight money (contractioary)

Back

Tight money (contractioary)

Front

Which policy would help lower unemployment? Options: Easy money policy (expansionary), Tight money policy (contractionary)

Back

Easy money policy (expansionary)

Front

During a recession, the Fed should use...

Back

easy money (expansionary)

Front

Which of the following scenarios would cause the interest rates to decrease? Increasing the supply of money, Decreasing the supply of money

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?
Options:
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