econ___ch_16____sec__4__rev - E CONOM ICS CHAPTER 16...

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ECONOMICS CHAPTER 16 SECTION 4 REVIEW 1) Explain the term monetarism. 2) What is the cost of money? 3) What happens to the price of money when the supply of money is high? 4) What happens to the price of money when the supply of money is low? 5) What type of money supply causes interest rates to be lower? 6) What type of money supply causes interest rates to be higher? 7) What is encouraged by greater investment spending? 8) When will the Fed follow an easy money policy? 9) What does an increased money supply do to interest rates? 10) What can go wrong with borrowing and investment AND unemployment and business expansion, if too much of an easy money policy is used? 11) When will the Fed follow a tight money policy? 12) What does a decreased money supply do to interest rates? 13) What can go wrong with investment AND GDP, of too much of a tight money policy is used? 14) What determines the interest rate? 15) What determines the level of aggregate demand?
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econ___ch_16____sec__4__rev - E CONOM ICS CHAPTER 16...

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