Match the term with the correct description. fiscal policy monetary policy money multiplier discount rate open market operations Question 6 the interest rate that the Fed sets for inter-bank borrowing represents the same thing as GDP the setting of the level of government spending and taxation by government policymakers 1/(1-MPC) deposits that banks have received but have not loaned out the interest rate that the Fed charges banks for short-term loans the purchase and sale of U.S. government bonds by the Fed

Aplia Homework: Federal Budgets and Public Policy The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2001 and June 2010. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in trillions of dollars. Debt Held Outside Fed. Govt. and Fed. Total National Reserve GDP Debt Debt Held by (Trillions of (Trillions of Federal Foreign Ownership U.S. Ownership Dollars) Dollars) Government and Federal (Trillions of (Trillions of Reserve Dollars) Dollars) (Trillions of Dollars) 3.0 1.0 1.7 June 2001 10.1 5.7 4.6 4.0 4.6 June 2010 14.5 13.2 Source: "U.S. Treasury, Bureau of Economic Analysis." Publicly held debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2001, the publicly held debt as a percentage of total national debt was In June 2001, the percentage of the U.S.…

Compare and contrast the strengths and weaknesses of fiscal policy and monetary policy. In 1300 words

38. Budget deficits are inflationary when a. b. the Federal Reserve contracts the money supply. the economy has lots of slack and the aggregate supply curve is horizontal. C. the economy is at full employment and the aggregate supply curve is vertical. d. private citizens buy the bonds to finance the debt.