GDP, Unemployment
Banking
Monetary Policy
Fiscal Policy
Multipliers, Crowding Out, and Loanable Funds
100

The GDP is comprised of investment spending, government spending, net exports, and this.

What is consumer spending?

100
The money multiplier is equal to the reciprocal of this.
What is the reserve requirement?
100

Who is the current (2025) Chair of the Federal Reserve?

Who is Jerome (Jay) Powell?

100

Discretionary fiscal policy includes these two things.

What are taxing and spending?

100
The spending multiplier is equal to this.
What is 1/MPS or 1/(1-MPC)?
200

If Pancho the expert video cassette maker is unemployed recently due to the advent of DVDs, his unemployment is of this type.

What is structural?

200
The maximum amount of money a bank can loan out is equal to this.
What is its excess reserves?
200
Expansionary Monetary Policy consists of decreasing the reserve requirement, buying bonds, and this.
What is decreasing the discount rate?
200

When the government to increases taxes but decreases spending, it is implementing this type of policy.

What is contractionary?

200
An increase in this causes the crowding out of investment spending.
What is the interest rate?
300
The GDP does not include second hand sales to avoid doing this.
What is double counting?
300

If Carlos deposits $100 into his bank, and a bank deposits it into his checkable deposits. What has happened to M1 and M2?

What is both M1 and M2 remain the same?

300

Recently, the Federal Reserve Board met to announce its target rate policy for the next fiscal quarter. What did they decide to do - lower, raise or keep the same?

What is keep target rates/the Federal Funds rates the same?

300
If the government wants to change taxes appropriately to exactly close the gap, then it must take into account these.
What is the MPS and MPC.
300
When the US government increases spending, this happens to the loanable funds market.
What is the demand for loanable funds shifts right?
400

The natural rate of unemployment, found at the full employment level is considered to be roughly this percentage.

What is ~4%?

400

The banking system "creates" money by doing this.

What is loaning out (excess) reserves?

400

Contractionary monetary policy serves to close the inflationary gap through doing this.

What is decreasing the money supply.

400

This economic policy can be implemented to both protect domestic markets and influence foreign actors. 

What is the implementation of tariffs?

400

Identify the interest rate that consumers pay and lenders charge - the listed "price of borrowing".

What is the nominal interest rate?

500
Part-time workers are counted as this.
What is fully employed?
500

This is the reserve system in which the US banking system functioned prior to 2019.

What is the limited reserve system?

500

What does investment spending in the equation rGDP = C + G + I + Xn refer to?

What is investment in capital goods?

500
The goal of contractionary fiscal policy is to close this.
What is the recessionary gap?
500

The supply of loanable funds shifts right when individuals are more inclined to do this.

What is save?

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