1) Give a summary of the macroeconomic circumstances that would lead the Federal Reserve to engage in an expansionary policy.
2) Would the Fed buy or sell government debt assets with banks?
3) Would bank reserves increase, decrease, or no change?
4) Will the monetary base increase, decrease, or no change?
5) Will the supply of fed funds increase, decrease, or no change?
6) Will the fed funds interest rate increase, decrease, or no change?
7) Will the yield curve shift up or down?
8) Will longer-term interest rates (e.g. 10-year T-Note) increase, decrease, or no change?
9) How are longer-term interest rates determined?
10) In response to the change in longer-term interest rates, will investment increase, decrease, or no change?
11) Will the growth rate of aggregate demand increase, decrease, or no change?
12) Will the growth rate of aggregate supply increase, decrease, or no change?
1) Give a summary of the macroeconomic circumstances that would lead the Federal Reserve to engage in an expansionary policy.
2) Would the Fed buy or sell government debt assets with banks?
3) Would bank reserves increase, decrease, or no change?
4) Will the monetary base increase, decrease, or no change?
5) Will the supply of fed funds increase, decrease, or no change?
6) Will the fed funds interest rate increase, decrease, or no change?
7) Will the yield curve shift up or down?
8) Will longer-term interest rates (e.g. 10-year T-Note) increase, decrease, or no change?
9) How are longer-term interest rates determined?
10) In response to the change in longer-term interest rates, will investment increase, decrease, or no change?
11) Will the growth rate of aggregate demand increase, decrease, or no change?
12) Will the growth rate of aggregate supply increase, decrease, or no change?
