Ch 15

Monetary policy refers to the actions the

The federal reserve's four goals of monetary policy are

The Federal reserve's two main monetary policy targets are

The federal reserve can affect directly its monetary policy __, which then affect its monetary policy __.

The money demand curve has a

An increase in the interest rate

An increase in the interest rate causes

An increase in the price level causes

Which of the following would cause the money demand curve to shift to the left?

An open market purchase of Treasury securities by the federal reserve would cause the equilibrium interest rate to

Using the money demand and supply model, an open market sale of Treasury securities by the federal reserve would cause the equilibrium interest rate to

An increase in real GDP can shift

For purposes of monetary policy, the Federal Reserve has targeted the interest rate known as the

When the price of a financial asset __ its interest rate will __.

if the fed buys treasury bills, this will shift the

expansionary monetary policy refers to the __ to increase real GDP

Which of the following describes what the Fed would do to pursue an expansionary monetary policy?

Contractionary monetary policy on the part of the Fed results in

If the fed lowers its target for the federal funds rate, this indicates that