Term
| decrease government spending & increase taxes |
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Definition
Which two fiscal policies are used to slow down the economy and reduce inflation?
Increase government spending & increase taxes
decrease government spending & increase taxes
Increase government spending & decrease taxes
Decrease government spending & decrease taxes |
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Term
| Increase government spending & decrease taxes |
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Definition
Which two fiscal policies are used to stimulate the economy and promote economic growth?
Increase government spending & increase taxes
decrease government spending & increase taxes
Increase government spending & decrease taxes
Decrease government spending & decrease taxes |
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Term
| Raising the Reserve Requirement |
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Definition
Which monetary policy will slow down the economy?
Buying OMO's
Raising the Reserve Requirement
Lowering the Reserve Requirement |
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Term
Buying OMO's
OMO Securities are bought from banks(lenders) increasing the amount of money in the money supply and the amount of money available loan |
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Definition
Which monetary policy will stimulate the economy and cause growth?
Selling OMO's
Buying OMO's
Raising the Reserve Requirement
Raising the Discount Rate |
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Term
| Lowering the Reserve Requirement |
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Definition
Which monetary policy will stimulate the economy and cause growth?
Selling OMO's
Lowering the Reserve Requirement
Raising the Discount Rate |
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Term
Decrease the reserve requirement
Banks will need to hold less money as reserves and more will be available to loan out |
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Definition
| The Federal Reserve wants to loosen the money supply increasing the amount of money banks have to loan. |
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Term
| Contractionary monetary policy (Tight Money policy) |
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Definition
| If the economy is growing too fast and inflation occurs, the Fed will conduct |
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Term
Increase the reserve requirement
Banks will need to hold more money as reserves and less will be available to loan out |
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Definition
| The Federal Reserve wants to decrease the money supply by limiting the amount of money that banks have to loan. |
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Term
Sell Open Market Operations
OMO Securities are sold to banks(lenders) reducing the amount of money from the money supply |
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Definition
| The Federal Reserve wants to tighten the money supply by removing money from circulation. |
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Term
Decrease the Discount Rate
It will become cheaper to borrow money from the district Federal Reserve banks and this borrowed money can be used to loan to others |
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Definition
| The Federal Reserve wants to increase the money supply by encouraging banks to borrow money from District Federal Reserve Banks |
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Term
Selling OMO's
Raising the Reserve Requirement
Raising the Discount Rate |
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Definition
Which of the following are considered contractionary monetary policy?
Selling OMO's
Buying OMO's
Raising the Reserve Requirement
Lowering the Reserve Requirement
Lowering the Discount Rate
Raising the Discount Rate |
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Term
Buy Open Market Operations
OMO Securities are bought from banks(lenders) increasing the amount of money in the money supply and the amount of money available loan |
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Definition
| The Federal Reserve wants to increase the money supply buy adding new money to it. |
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Term
Buying OMO's
Lowering the Reserve Requirement
Lowering the Discount Rate |
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Definition
Which of the following are considered expansionary monetary policy?
Selling OMO's
Buying OMO's
Raising the Reserve Requirement
Lowering the Reserve Requirement
Lowering the Discount Rate
Raising the Discount Rate |
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Term
| Expansionary Monetary Policy (Easy Money Policy) |
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Definition
| If the economy is not growing, the Fed will conduct |
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Term
|
Definition
Which policy creates an increase in exports?
tight money (strong dollar)
easy money (weak dollar) |
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Term
| tight money (strong dollar) |
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Definition
Which policy creates an increase in imports?
tight money (strong dollar)
easy money (weak dollar) |
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