Expansionary Monetary Policy: Helping the Economy Grow


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question 1 of 3

To counteract a recession, the Federal Reserve should:

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1. Which of the following statements is TRUE of expansionary monetary policy during a recession?

2. If the supply of money increases, what happens in the money market?

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About This Quiz & Worksheet

This quiz and corresponding worksheet can help assess your understanding principles of expansionary monetary policy. You will be quizzed on topics like recessions and exports.

Quiz & Worksheet Goals

This quiz/worksheet combo can be used to assess your knowledge of:

  • The Federal Reserve
  • Monetary policies
  • Supply of money
  • Expansionary monetary policy

Skills Practiced

This quiz and worksheet can help you practice the following skills:

  • Reading comprehension - ensure that you draw the most important information from the related monetary policy lesson
  • Critical thinking - apply relevant concepts to examine information on monetary policies in a different light
  • Information recall - access the knowledge you have gained regarding the supply of money

Additional Learning

To learn more about expansionary monetary policy, review the accompanying lesson Expansionary Monetary Policy: Helping the Economy Grow. This lesson covers the following objectives:

  • Identify the three main goals of the Federal Reserve
  • Learn characteristics of expansionary monetary policy
  • Examine the three tools of expansionary monetary policy
  • Define discount rate
  • Describe how expansionary monetary policy works