Economics > QUESTIONS & ANSWERS > Chino Hills High - ECON micro6.06 76% (All)

Chino Hills High - ECON micro6.06 76%

Document Content and Description Below

Tuesday, June 27, 2017 1:43 AM Answers: 1. Which of the following are included in expansionary monetary policy? (Select all that are correct) increase discount rate increase federal funds rate in ... crease reserve requirement buy bonds decrease discount rate decrease reserve requirement decrease federal funds rate sell bonds Score: 12 of 12 2. If the Federal Reserve would like to correct a recessionary gap, it would increase the discount rate. increase the reserve requirement. conduct an open market sale. conduct an open market purchase. increase the federal funds rate. Score: 4 of 4 3. In order to decrease investment spending, the Fed could directly decrease the discount rate. increase the reserve requirement. conduct an open market purchase. decrease the prime interest rate. increase the federal funds rate. Score: 4 of 4 4. The federal funds rate is the rate the Fed charges member banks to borrow money. set directly by the Fed through monetary policy. the rate banks charge each other to borrow money. set directly by the Fed through fiscal policy. the rate banks charge their best customers to borrow money. Score: 4 of 4 5. If producers believe that the economy is strong so that investment spending increases, we would expect to see an increase in the demand for money. This study source was downloaded by 100000816398418 from CourseHero.com on 03-27-2021 15:43:03 GMT -05:00 https://www.coursehero.com/file/24105735/606-76docx/ This study resource was shared via [Show More]

Last updated: 3 years ago

Preview 1 out of 3 pages

Buy Now

Instant download

We Accept: