AP Macro Unit 4 Review

AP Macro Unit 4 Review

Assessment

Flashcard

Other

KG

Hard

Created by

Wayground Content

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25 questions

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1.

FLASHCARD QUESTION

Front

Which of the following is a tool used by the Federal Reserve to conduct monetary policy? a) Fiscal policy, b) Open market operations, c) Price controls, d) Import tariffs

Back

Open market operations

2.

FLASHCARD QUESTION

Front

In the short run, an expansionary monetary policy will likely lead to:

Back

Lower unemployment and higher inflation

3.

FLASHCARD QUESTION

Front

The money supply is increased when the Federal Reserve:

Back

Lowers the discount rate

4.

FLASHCARD QUESTION

Front

In the long run, an expansionary monetary policy will lead to:

Back

Lower output and lower prices

5.

FLASHCARD QUESTION

Front

The interest rate that banks charge each other for overnight loans is called the:

Back

Federal funds rate

6.

FLASHCARD QUESTION

Front

The Fed can influence the economy through all of the following tools except: The Reserve requirement, The discount rate, Open Market Operations

Back

The Prime Rate

7.

FLASHCARD QUESTION

Front

If the Fed wants to decrease the money supply, it can: Lower the discount rate, Buy government securities, Lower the federal funds rate, Raise the reserve requirement

Back

Raise the reserve requirement

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