According to the monetary theory, which of the following is the route through wh

Question

According to the monetary theory, which of the following is the route through which contractionary monetary policy operates?

Question 8 options:

Money down implies interest rate up implies investment down implies income down.

Money down implies interest rate down implies investment down implies income down.

Money down implies interest rate up implies investment up implies income down.

Money down implies interest rate down implies investment up implies income down.

Economic theory indicates that monetary policy directly affects:

Question 9 options:

social spending.

tax rates.

the availability of credit.

the antitrust laws.

During fall 2008, the Federal Reserve Bank reduced the target for the federal fund rate to near to 0%. What is the name of the entity in the Federal Reserve System which made this decision?

Question 10 options:

Federal Advisory Committee

Federal Deposit Insurance Corporation

Federal Funds Operating Group

Federal Open Market Committee

Money down implies interest rate up implies investment down implies income down.

Money down implies interest rate down implies investment down implies income down.

Money down implies interest rate up implies investment up implies income down.

Money down implies interest rate down implies investment up implies income down.

Explanation / Answer

ans 8

a) Money down implies interest rate up implies investment down implies income down.

ans 9

c) the availability of credit.

ans 10

d) Federal Open Market Committee

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