The feds countercyclical policy during expansion and

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Chapter 25 / Exercise 34
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175.The Fed's countercyclical policy during expansion and prosperity includes:a.raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market.b.raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market.c.raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market.d.raising the required reserve ratio, cutting the discount rate, and buying government bonds on the open market.e.lowering the required reserve ratio, cutting discount rates, and buying government bonds on the open market.ANS:A
PTS:1DIF:ChallengingNAT:BUSPROG: AnalyticTOP:How Monetary Policy Creates MoneyKEY:Bloom’s: Analysis176.Which of the following would cause the money supply to increase?
PTS:1DIF:EasyNAT:BUSPROG: AnalyticTOP:How Monetary Policy Creates MoneyKEY:Bloom’s: Comprehension177.When a recession hits, we would expect the government to run a budget deficit by raising the level of its spending or by cutting taxes, or perhaps both. The Fed would be expected to:
PTS:1DIF:ChallengingNAT:BUSPROG: AnalyticTOP:How Monetary Policy Creates MoneyKEY:Bloom’s: Analysis178.When the economy is at full employment and inflation is present, the government could create a surplus budget by cutting its own spending and raising taxes. The Fed would be expected to:
PTS:1DIF:ModerateNAT:BUSPROG: AnalyticTOP:How Monetary Policy Creates MoneyKEY:Bloom’s: Comprehension
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Chapter 25 / Exercise 34
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