Determine whether each policy below is expansionary (increasing aggregate demand) or contractionary (decreasing aggregate demand) and whether it is fiscal or monetary policy. 1. The Federal Reserve buys bonds ✓ [Select] 2. Congress increases Medicare spe Contractionary Fiscal Policy Expansionary Fiscal Policy Expansionary Monetary Policy Contractionary Monetary Policy [Select] 3. The Federal Reserve raises the required reserve ratio. 4. Congress cuts defense spending. [Select]
Determine whether each policy below is expansionary (increasing aggregate demand) or contractionary (decreasing aggregate demand) and whether it is fiscal or monetary policy. 1. The Federal Reserve buys bonds ✓ [Select] 2. Congress increases Medicare spe Contractionary Fiscal Policy Expansionary Fiscal Policy Expansionary Monetary Policy Contractionary Monetary Policy [Select] 3. The Federal Reserve raises the required reserve ratio. 4. Congress cuts defense spending. [Select]
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 19SQ
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