AP Macro - 5.1 Quiz

The federal government is responsible for implementing monetary policy

• true

• false

Which of the following is NOT an example of monetary policy?

• increasing the federal funds rate

• reducing the cash reserve ratio

• increasing federal income taxes

• buying government bonds

Wages increase --> production costs increase --> SRAS decreases

This sequence is the result of which type of policy being implemented?

• contractionary fiscal policy

• contractionary monetary policy

• expansionary monetary policy

• expansionary fiscal policy

• no policy (self-adjustment)

Which of the following policies could be used to bring this economy back to long-run equilibrium?

• decrease the cash reserve ratio

• increase government spending

• sell government bonds

• decrease the federal funds rate

Show the impact that the following action has on the money market graph and the AD / AS graph

Buying government bonds

Which country are you most interested in exploring during our policy action activity?

• USA

• Turkey

• Argentina

• China