Question 1) Write down the goals of monetary policy.
Question 2) Write down the principal assets and liabilities of the Federal Reserve Banks.
Question 3) Describe the cause effect chain between monetary policy and changes in equilibrium GDP.
Question 4) Show graphically the money market and how a change in the money supply will affect the interest rate.
Question 5) Illustrate the effects of interest rate changes on investment spending.
Question 6) Explain the impact of changes in investment on aggregate demand and equilibrium GDP.
Question 7) Contrast the effects of the easy money policy with the effects of a tight money policy.
Question 8) Explain the federal funds rate and its significance for monetary policy.
Question 9) Write down four shortcomings and three strengths of monetary policy.
Question 11) Describe the net export effect of an expansionary and a contractionary monetary policy.