Desert Mountain High School - ECONOMICS 10106.06 Introduction to Monetary Policy Module 6

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06.06 Introduction to Monetary Policy Module 6 1 Which of the following are included in contractionary monetary policy? (Select all that are correct) ✓ increase discount rate increase federal f... unds rate ✓ increase reserve requirement buy bonds decrease discount rate decrease reserve requirement decrease federal funds rate ✓ sell bonds 2. If interest rates increase from 8% to 9½%, we would expect to see an increase in the demand for money. a decrease in the demand for money. an increase in the quantity of money demanded. ✓ a decrease in the quantity demanded of money. This study source was downloaded by 100000816398418 from CourseHero.com on 03-27-2021 14:06:36 GMT -05:00 https://www.coursehero.com/file/27264070/0606-Introduction-to-Monetary-Policy-Module-6docx/ This study resource was shared via CourseHero.com no change in the demand for money. 3. If investors begin selling all their stocks and increasing their money holdings, we would expect to see a decrease in the demand for money. ✓ an increase in the demand for money. an increase in the quantity of money demanded. a decrease in the quantity demanded of money. no change in the demand for money. 4. Which of the following would be a monetary policy option for solving the problem in this economy? I. Sell securities bonds. II. Buy securities bonds. This study source was downloaded by 100000816398418 from CourseHero.com on 03-27-2021 14:06:36 GMT -05:00 https://www.coursehero.com/file/27264070/0606-Introduction-to-Monetary-Policy-Module-6docx/ [Show More]

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