Question: 1. According to Keynesian theory, expansionary monetary policy should be used during____, while contractionary monetary policy should be used during____.
A a surplus, a deficit
B an economic expansion, a recession
C a recession, an economic expansion
D a war, peacetime
2. which fo the following is a reliable way to obtain the same rate of return as the stock market?
A buy the stocks in a stock index such as the Dow Jones
B Buy shares of a professionally-managed hedge fund
C buy US Treasury bonds
D Buy stocks that cost less than $1.00
3. According to Say's law, shifts in ____lead to shifts in ____, causing economic growth.
A Aggregate Demand, Aggregate Supply
B Aggregate Supply, Aggregate Demand
C Investment, Interest rates
D the money supply, Aggregate Demand
4. During the Great Recession, the Fed undertook ____monetary policy, which was____ by banks accumulating $2,500 billion in excess reserves.
A expansionary, supported
B contractionary, supported
C expansionary, counteracted
D contractionary, counteracted