Monetary Policy Graphs (1 of 2) - Macro 4.6

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Business
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11th Grade - University
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Hard
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What determines the quantity of investment in the economy?
The amount of exports
The equilibrium interest rate
The inflation rate
The level of government spending
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the effect of a recessionary gap on the economy?
It leads to overproduction
It results in full employment
It indicates production below full employment GDP
It causes inflation
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does an increase in the money supply affect interest rates?
It has no effect on interest rates
It decreases interest rates
It increases interest rates
It stabilizes interest rates
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT a tool used by the Fed to increase the money supply?
Lowering the discount rate
Buying bonds
Increasing the discount rate
Lowering the reserve requirement
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the overall strategy called that involves adjusting the money supply to influence the economy?
Monetary policy
Fiscal policy
Trade policy
Supply-side policy
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