Question 1

According to the AS/AD model,in the short run an increase in the federal funds rate will

Accepted Answer

A)  decrease the price level and decrease real GDP. 
B)  increase the price level and decrease real GDP. 
C)  decrease the price level but leave real GDP unchanged. 
D)  decrease real GDP but leave the price level unchanged. 
A)  decrease the price level and decrease real GDP. 
B)  increase the price level and decrease real GDP. 
C)  decrease the price level but leave real GDP unchanged. 
D)  decrease real GDP but leave the price level unchanged.

Question 2

In the short run,the Fed's actions to fight inflation shift the aggregate demand curve leftward.

Accepted Answer

A) True 
 B)False

Question 3

During the financial crisis of 2008-2009,the Fed was concerned about

Accepted Answer

A)  the bubble that was forcing asset prices higher. 
B)  the publics rush to deposit its currency into banks. 
C)  keeping the federal funds rate from falling too far. 
D)  providing the banking system with enough liquidity. 
A)  the bubble that was forcing asset prices higher. 
B)  the publics rush to deposit its currency into banks. 
C)  keeping the federal funds rate from falling too far. 
D)  providing the banking system with enough liquidity.

Question 4

If the Fed is concerned with inflation it will ________ the federal funds rate in order to ________ aggregate demand.

Accepted Answer

A)  raise; increase 
B)  lower; increase 
C)  raise; decrease 
D)  lower; decrease 
A)  raise; increase 
B)  lower; increase 
C)  raise; decrease 
D)  lower; decrease

Question 5

In the short run,a rise in the federal funds rate shifts the

Accepted Answer

A)  AD curve leftward. 
B)  SAS curve leftward. 
C)  LAS curve leftward. 
D)  None of the above because a decrease in the quantity of money does not shift a curve. 
A)  AD curve leftward. 
B)  SAS curve leftward. 
C)  LAS curve leftward. 
D)  None of the above because a decrease in the quantity of money does not shift a curve.

According to the AS/AD model,in the short run an increase in the federal funds rate will

In the short run,the Fed's actions to fight inflation shift the aggregate demand curve leftward.

During the financial crisis of 2008-2009,the Fed was concerned about

If the Fed is concerned with inflation it will the federal funds rate in order to aggregate demand.

In the short run,a rise in the federal funds rate shifts the

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 14: Monetary Policy

According to the AS/AD model,in the short run an increase in the federal funds rate will

In the short run,the Fed's actions to fight inflation shift the aggregate demand curve leftward.

During the financial crisis of 2008-2009,the Fed was concerned about

If the Fed is concerned with inflation it will ________ the federal funds rate in order to ________ aggregate demand.

In the short run,a rise in the federal funds rate shifts the

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

If the Fed is concerned with inflation it will the federal funds rate in order to aggregate demand.