Mon and fiscal

During the contractionary phase of the business cycle, what policy should the FED conduct?

• Tight money policy

• Easy money policy

• Expansionary Fiscal policy

• Contractionary fiscal policy

Fiscal policy is conducted by the

• Federal Reserve

• Central bank

• Government

• President and congress

During the contractionary phase of the business cycle, what policy should the Government conduct?

• Tight money policy

• Easy money policy

• Expansionary Fiscal policy

• Contractionary fiscal policy

What could have caused this

• Buy bonds

• Increase reserve ratio

• decrease discount rate

• increase taxes

During the expansionary phase of the business cycle, what policy should the FED conduct?

• Tight money policy

• Easy money policy

• Expansionary Fiscal policy

• Contractionary fiscal policy

Monetary policy is conducted by the

• Federal Reserve

• Central bank

• Government

• President and congress

If this occurs, they are fighting

• Recession and Cyclical unemployment

• Inflation

If contractionary Monetary policy (fights inflation), which series of events occurs?

• MS curve shifts right, Nominal interest rate decreases, more borrowing occurs, AD shifts right, movement up the SRPC

• MS curve shifts left, Nominal interest rate increases, less borrowing occurs, AD shifts left, movement down the SRPC

• MS curve shifts right, Nominal interest rate increases, more borrowing occurs, AD shifts right, movement down the SRPC

• MS curve shifts left, Nominal interest rate decreases, less borrowing occurs, AD shifts right, movement down the SRPC

To fight inflation

• Decrease RR, Decrease discount rate, Decrease Federal funds rate, buy bonds

• Increase RR, Increase discount rate, Increase Federal funds rate, Sell bonds

• Decrease RR, Decrease discount rate, Decrease Federal funds rate, sell bonds

• Increase RR, Increase discount rate, Increase Federal funds rate, Buy bonds

To fight a recession or unemployment

• Decrease RR, Decrease discount rate, Decrease Federal funds rate, buy bonds

• Increase RR, Increase discount rate, Increase Federal funds rate, Sell bonds

• Decrease RR, Decrease discount rate, Decrease Federal funds rate, sell bonds

• Increase RR, Increase discount rate, Increase Federal funds rate, Buy bonds