GPFP - 8

Question 0

Monetary policy expands the economy by:

Answer 0

Increasing the money supply
Reducing interest rates
Loosening credit

Question 1

Fed tools for monetary policy

Answer 1

Setting reserve requirement
Raising or lowering discount rate
Buying or selling treasury securities
Margin requirements

Question 2

Monetary policy slows the economy by:

Answer 2

Shrinking the money supply
Increasing interest rates
Tightening credit

Question 3

Government tools for fiscal policy

Answer 3

Raising or lowering taxes
Increasing or decreasing spending
Borrowing or repaying debt

Question 4

Fiscal policy expands the economy by:

Answer 4

Increasing spending

Reducing taxes

Question 5

Fiscal policy slows the economy by:

Answer 5

Reducing spending

Increasing taxes

Question 6

GDP is the sum of four components

Answer 6

Consumer spending
Gross private domestic investment
Government spending
Total exports minus total imports

Question 7

Which way is the yield curve: short-term rates are expected to increase in the future

Answer 7

Upward sloping yield curve

Question 8

Which way is the yield curve: short-term rates are expected to fall in the future

Answer 8

Downward sloping yield curve

Question 9

___ yield curve it will slow down to the right to show that the yield is higher for short-term maturities them for long-term maturities.

Answer 9

Inverted