Suppose that the Federal Reserve is concerned about a potential recession and wishes to promote economic growth. It could ____.

Suppose that the tax multiplier is -2.0. If the government reduces taxes by $0.4 trillion, Real GDP will ____.

Consider the foreign exchange market for U.S. dollars. A decrease in Americans’ demand for imported food leads the ____ to decrease, and the dollar ____.

Which of the following is NOT one of a central bank’s monetary policy tools?

True or False: An open-market sale reduces the size of the monetary base and reduces the size of the money supply by even more. 

Consider the foreign exchange market for U.S. dollars. An increase in Americans’ demand for imported food leads the ____ to increase, and the dollar ____. 

Suppose that the Federal Reserve conducts an open-market purchase of government securities. As a result, the monetary base ____, and the Federal Funds rate _____.

Suppose that the government spending multiplier is 2.5, and the tax multiplier is    -3.0. Real GDP is currently $25.0 trillion. Potential GDP is $23.5 trillion. If the government wishes to eliminate the existing output gap it could ____.

True or False: Cryptocurrencies are not included in the money supply, because they are not considered an asset. 

Congress and the President decide to enact a large increase in government spending. This is considered ____.