Econ 101 HW 7 due april 13

Econ 101 HW 7 due april 13 - Take Assessment: Homework Due...

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Take Assessment: Homework Due Monday, April 13 Question 1 1 points Save When is it most appropriate to pursue contractionary monetary policy? a. When the Fed suspects that GDP growth is slowing in the economy. b. When the Fed suspects increasing inflationary pressures which might have future negative effects on the economy. c. When the Fed suspects decreasing inflationary pressures which might have future negative effects on the economy. d. When the Fed thinks the target federal funds rate is too high. Question 2 1 points Save What is the goal of contractionary monetary policy? a. To encourage GDP growth by lowering the interest rate to encourage firms and consumers to spend more on investment thereby increasing economic activity. b. To discourage GDP growth by raising the interest rate to encourage firms and consumers to spend less on investment thereby decreasing economic activity. c. To encourage inflation by lowering the interest rate to encourage firms and consumers to spend more on investment thereby increasing economic activity. d. To discourage inflation by raising the interest rate to encourage firms and consumers to spend less on investment thereby decreasing economic activity.
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This note was uploaded on 07/29/2009 for the course ECON 101 taught by Professor Bansak during the Spring '07 term at San Diego State.

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Econ 101 HW 7 due april 13 - Take Assessment: Homework Due...

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