Holt McDougal Economics Chapter 16.3: Monetary Policy Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. The Federal Reserve controls the growth rate of the money supply through _____.

Question 2 2. What theory states that in the long run, changes in money supply influence nominal variables but not real economic variables?

Question 3 3. How would the Federal Reserve implement an expansionary monetary policy?

Question 4 4. The method of affecting the money supply that is used the least by the Fed is

Question 5 5. How does an increase in the money supply impact economic output within the US economy?

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Question 6 6. How would economists graphically illustrate a decrease in the money supply?

Question 7 7. What's the key focus in monetarism?

Question 8 8. The most well-known contemporary monetarist is whom?

Question 9 9. If all other factors remain equal, what would happen to interest rates when the amount of money circulating in the economy is increased?

Question 10 10. The rate banks pay to borrow money from the Fed is called the _____ rate.

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Question 11 11. All of the following are ways that the Federal Reserve can affect the money supply except _____.

Question 12 12. What's the monetarists' tool of choice in addressing economic fluctuations?

Question 13 13. The Fed's monetary policy has the greatest effect on real Gross Domestic Product under what set of conditions?

Question 14 14. If the Federal Reserve suddenly decreases the growth rate of the money supply from 6% to 4% per year, what is likely to happen to aggregate demand and real Gross Domestic Product in the short-run?

Question 15 15. An increase in the money supply will likely

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Question 16 16. What's the best description of the monetarists' view of government intervention into the economy with aggressive fiscal policy?

Holt McDougal Economics Chapter 16.3: Monetary Policy Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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