ECON 214
Liberty University
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Exam (elaborations)
Liberty University ECON 214 Test 5
Liberty University
ECON 214
Expansionary monetary policy - Correct Ans-money supply increases and interest rates decrease, AD increases, real GDP increases (open market purchase of treasury Securities) Open market purchases by the Fed loanable funds market _______ and interest rates ______ - Correct Ans-Increase, decrease Fisher equation - Correct Ans-nominal interest rate - inflation rate = real interest rate* Contractionary monetary policy - Correct Ans-money supply decreases and interest rates increase, AD dec...
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