Question 1

In the United States,monetary policy is the responsibility of the Federal Reserve Board of Governors and the Federal Open Market Committee.

Accepted Answer

A) True 
 B)False

Question 2

When the economy is in a recession,

Accepted Answer

A)  expansionary monetary policy can potentially result in increased real output, but only in the short run. 
B)  expansionary monetary policy can potentially result in increased real output in both the short run and long run. 
C)  contractionary monetary policy can potentially result in increased real output, but only in the short run. 
D)  contractionary monetary policy can potentially result in increased real output in both the short run and long run. 
A)  expansionary monetary policy can potentially result in increased real output, but only in the short run. 
B)  expansionary monetary policy can potentially result in increased real output in both the short run and long run. 
C)  contractionary monetary policy can potentially result in increased real output, but only in the short run. 
D)  contractionary monetary policy can potentially result in increased real output in both the short run and long run.

Question 3

If the Fed was trying to reduce demand-pull inflation,it might:

Accepted Answer

A)  sell government securities, lower reserve requirements and lower the discount rate. 
B)  sell government securities, raise reserve requirements and raise the discount rate. 
C)  sell government securities, lower reserve requirements and raise the discount rate. 
D)  buy government securities, lower reserve requirements and raise the discount rate. 
A)  sell government securities, lower reserve requirements and lower the discount rate. 
B)  sell government securities, raise reserve requirements and raise the discount rate. 
C)  sell government securities, lower reserve requirements and raise the discount rate. 
D)  buy government securities, lower reserve requirements and raise the discount rate.

Question 4

Which of the following pairs of policies shift aggregate demand in the same direction?

Accepted Answer

A)  A tax increase and an increase in the money supply. 
B)  A transfer payment decrease and an increase in the money supply. 
C)  A reduction in government purchases and decline in the money supply. 
D)  An increase in government purchases and a decline in the money supply. 
A)  A tax increase and an increase in the money supply. 
B)  A transfer payment decrease and an increase in the money supply. 
C)  A reduction in government purchases and decline in the money supply. 
D)  An increase in government purchases and a decline in the money supply.

Question 5

If nominal GDP is $954 billion and velocity is 9,then the money supply:

Accepted Answer

A)  is $106 billion. 
B)  is $122 billion. 
C)  is $98 billion. 
D)  is greater than $8 trillion. 
A)  is $106 billion. 
B)  is $122 billion. 
C)  is $98 billion. 
D)  is greater than $8 trillion.

Question 6

Decisions regarding purchases and sales of securities by the Fed are made by:

Accepted Answer

A)  FDIC. 
B)  Discount Committee. 
C)  Federal Open Market Committee. 
D)  Federal Funds Committee. 
A)  FDIC. 
B)  Discount Committee. 
C)  Federal Open Market Committee. 
D)  Federal Funds Committee.

Question 7

In its original role as lender of last resort,the Fed was supposed to:

Accepted Answer

A)  provide mortgage money for the poor. 
B)  keep the money supply from drying up during economic panics. 
C)  lend money to people in localities not served by commercial banks. 
D)  lend money to developing nations whose own central banks had failed. 
A)  provide mortgage money for the poor. 
B)  keep the money supply from drying up during economic panics. 
C)  lend money to people in localities not served by commercial banks. 
D)  lend money to developing nations whose own central banks had failed.

In the United States,monetary policy is the responsibility of the Federal Reserve Board of Governors and the Federal Open Market Committee.

When the economy is in a recession,

If the Fed was trying to reduce demand-pull inflation,it might:

Which of the following pairs of policies shift aggregate demand in the same direction?

If nominal GDP is $954 billion and velocity is 9,then the money supply:

Decisions regarding purchases and sales of securities by the Fed are made by:

In its original role as lender of last resort,the Fed was supposed to:

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

Filters

Exam 26: The Federal Reserve System and Monetary Policy

In the United States,monetary policy is the responsibility of the Federal Reserve Board of Governors and the Federal Open Market Committee.

When the economy is in a recession,

If the Fed was trying to reduce demand-pull inflation,it might:

Which of the following pairs of policies shift aggregate demand in the same direction?

If nominal GDP is $954 billion and velocity is 9,then the money supply:

Decisions regarding purchases and sales of securities by the Fed are made by:

In its original role as lender of last resort,the Fed was supposed to:

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

Filters