Which of the following is an example of expansionary monetary policy?
A) Congress passing a new government stimulus package.
B) The Fed raising the discount rate for member banks.
C) The Fed increasing the money supply to push interest rates lower.
D) The president signing an executive order to raise the minimum wage of government employees.
Ans: B) The Fed raising the discount rate for member banks.
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Do economists analyze people's thought processes or do they look at what people actually do?
A) Economists focus only on people's thought processes. B) Economists focus on what people do, not their thought processes. C) An economist's focus is about half-and-half between actions and thought processes. D) Macroeconomists focus on thought processes while microeconomists focus on actions.
What is fiat money? Why is fiat money important in the United States today?
What will be an ideal response?