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People Window Help Home Student 100% G Rate My Professors Re ASSIST Prompt Page Heinle Learning Center Quiz 4 Done Quiz 4 MULTIPART LESSONs/ee8b2bf8ceoc47a6a220f5ac4700eoda?me 7. The Federal Reserve's main assets are currency in circulation and bank reserves. the facilities of the 12 district banks corporate stocks and bonds U.S. Treasury bills 8. The three main monetary policy tools are interest rates, taxes, and government purchases currency, near-moneys, and reserve ratio. deposit insurance, discount rate, and money multiplier reserve requirements, the discount rate and open-market purchases 9. The money demand curve is because a lower interest rate the opportunity cost of holding money. O upward-sloping; increases downward-sloping; increases upward sloping; decreases downward sloping; decreases 10. Fiscal policies that require no government action but that are expansionary when the economy contracts and contractionary when the economy expands are known as: cretionary fiscal policy automatic stabilizers autonomous spending policies destabilizing fiscal policies Remaining: 36:45 Start: 3:03 P 3268

Explanation / Answer

8. reserve requirements, the discount rate, and open market purchases.

9. downward sloping; decreases

Explanation: The money demand curve is downward-sloping because the opportunity cost of holding money is directly related to the interest rate.

10. Automatic stabilizer.

Explanation: Automatic stabilizers offset fluctuations in economic activity without direct intervention by policymakers(government). For example, when incomes are high, tax liabilities rise and eligibility for government benefits falls, without any change in the tax code or other legislation. Conversely, when incomes decreases, tax liabilities decreases and more people become eligible for government transfer programs.

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