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- . usury laws legal tender Open Market Committee




 

usury laws legal tender Open Market Committee 䳿 lender of last resort reserve ratio () discount rate required reserves thrift institutions () liabilities liabilities and net worth loans of commercial banks Board of Governors reserve currency Federal Reserve System (The Fed) - securities monetizing the debt , monetary rule central bank independence open market operations ,, ea sy money policy ,, t ight money polity expansionary monetary policy goals of monetary policy automatic stabilizer discretionary fiscal policy crowding out effect ( ) rule of reasons () contractionary fiscal policy cyclically balanced budget annually balanced budget

 

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13. What are political problems that complicate the use of fiscal policy to stabilize the economy?

14. What are the important assets and liabilities of the central banks?

15. What is meant by fiscal policy?

 

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6. If the government wishes to increase the level of real GDP, it might:

a) reduce taxes;

b) reduce its purchases of goods and services;

c) reduce transfer payments;

d) reduce the size of the budget deficit.

 

7. Which policy combination would tend to reduce net exports:

a) tight money policy and expansionary fiscal policy;

b) easy money policy and expansionary fiscal policy;

c) tight money policy and contractionary fiscal policy;

d) easy money policy and contractionary fiscal policy.

 

 

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