sesuo Federal Reserve nates (fss bias) the tederal nment\'s tdet 20, The stbe ap

Question

sesuo Federal Reserve nates (fss bias) the tederal nment's tdet 20, The stbe approved tby the president est be approve d by the coneress ust be approved by the president and the conaress are not subject to approval by any branch of goveroment 1. The amount of money (as defined by M1) in the economy inereaes an individual switches from a saving account to a checkingaccount individual purchases clothes with a credit card e an individual cashes a check written by a business d. none of the above 22. How does money function as a unit of account? is convertible into commodities that have intrinsic value of goods and services are measured in terms of money bank all of the above accounts make it easy for people to store their wealth d. Part 11 Questions below pertain to the Fed's monetary polley regarding two different economie situationss 1-Suppose the economy is in deep recession and ageregate sup range). The Fed pursues an expansionary monetary policy. What happens to the following: ply curve is flat (Keynesian a. ABgregate output b. Unemployment rate c. Inflation rate 2-Suppose the economy is close to its upward sloping (intermediate range). The Fed pursues a contractionary monetary policy. What happens to the following full employment capacity and aggregate supply curve is a. Real GDP b. Employment level c. Price level

Explanation / Answer

Question 19). Answer :- Option d). To balance the federal government's budget.

Question 20). Answer :- Option d). are not subject to approval by any branch of government.

Question 21). Answer:- Option a). An individual switches from a saving bank account to a checking amount.

Question 22). Answer :- Option b). The price of goods and services are measured in the terms of money.

Part II

1-a). Answer :- Aggregate output will increase.

1-b). Answer :- Unemployment rate will decrease.

1-c). Answer :- Inflation rate will increase.

Part II

2-a). Answer :- Real GDP will decrease.

2-b). Answer :- Employment level will decrease.

2-c). Answer :- Price level will decrease.

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