Exam 14: Modern Macroeconomics and Monetary Policy

The short-run impact of an unanticipated shift to a more restrictive monetary policy is most likely to be a reduction in

The low interest rate policies of the Federal Reserve during 2002-2004,

Unanticipated restrictive monetary policy would tend to cause

If the Fed fears an economic downturn, it would be most likely to

The "quantitative easing" policies of the Fed during, and following, the financial crisis of 2008-2009,

Monetary policy pushed interest rates to historically low levels during 2002-2004, but was more restrictive during 2005-2006. Economic analysis indicates that this policy

The demand for money varies

An unexpected increase in the supply of money will

Monetarists reject using discretionary monetary policy as an effective stabilization tool because

An increase in the nominal interest rate would

Given the strict quantity theory of money, if the quantity of money doubled, prices would

Which of the following is true?

The Fed's purchase of U.S. government securities constitutes

As the Fed increased the volume of loans to financial institutions in response to the 2008 financial crisis, this resulted in

When the Fed unexpectedly decreases the money supply,

As the Fed maintained interest rates at near zero during 2008-2012,

What effect does expansionary monetary policy have on short-term real interest rates?

Which of the following would be most likely to increase the supply of loanable funds and lead to low interest rates?

As the Fed shifted to a highly expansionary monetary policy during the second half of 2008, why were banks reluctant to extend loans and make investments?

When the Fed unexpectedly increases the money supply, it will cause an increase in aggregate demand because