59. When the RR is increased [10% to 50%], the ER of member banks
{"Image DocumentName": "59. When the RR is increased [10% to 50%], the ER of member banks", "Image ImageDescription": "are (increased/decreased) and the monetary multiplier is (incr/decr). 60. Assume the RR is 25% & the Fed [ ]buys  4 M of bonds from the. public[ ]. The MS is increased by ( 3/ 4/) million and the PMC. is increased by ( 16/ 12) mil. Potential TMS is ( 3/ 4/ 12/ 16) mil. 61. When the Fed lends to commercial banks [ ], this is called the. (Fed Funds Rate/discount rate) and when commercial banks make. loans to one another, this is the (Fed Funds Rate/ Discount Rate). 62. The Keynesian cause-effect chain of an easy money policy would. be to (buy/sell) bonds; which would (increase/decrease) the MS, which would (lower/raise) interest rates & (incr/decr) Ig, C , Xn, & Y. 63. If the Fed were to buy government securities in the open market, we would anticipate (lower/higher) interest rates, an (expanded/contracted) GDP, and (appreciation/depreciation) of the dollar. 64. If the Fed were reducing demand-pull inflation, the proper policies. would be (lower/raise) the discount rate, (lower/raise) the RR and. ((buy/sell) government bonds. 65. Monetary policy is thought to be more effective in (controlling inflation/ fighting depressions) and fiscal is more effective (controlling inflation/ fighting depressions). 66.The net export effect of an easy money policy (strengthens/ weakens) that policy, while the net export effect of expansionary fiscal policy (strengthens/weakens) that policy. [impact of interest rates] NS", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}