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Flashcards in GPFP - 8 Deck (10)
0

Fed tools for monetary policy

Setting reserve requirement
Raising or lowering discount rate
Buying or selling treasury securities
Margin requirements

1

Monetary policy expands the economy by:

Increasing the money supply
Reducing interest rates
Loosening credit

2

Monetary policy slows the economy by:

Shrinking the money supply
Increasing interest rates
Tightening credit

3

Government tools for fiscal policy

Raising or lowering taxes
Increasing or decreasing spending
Borrowing or repaying debt

4

Fiscal policy expands the economy by:

Increasing spending
Reducing taxes

5

Fiscal policy slows the economy by:

Reducing spending
Increasing taxes

6

GDP is the sum of four components

Consumer spending
Gross private domestic investment
Government spending
Total exports minus total imports

7

Which way is the yield curve: short-term rates are expected to increase in the future

Upward sloping yield curve

8

Which way is the yield curve: short-term rates are expected to fall in the future

Downward sloping yield curve

9

___ yield curve it will slow down to the right to show that the yield is higher for short-term maturities them for long-term maturities.

Inverted