Loosen or tighten
Exercise and reference answers
- Left
- Expansionary
- Items
- Item
- Lower rates
- Answer
- Expansionary
- Item
- Raise rates
- Answer
- Contractionary
- Item
- Buy bonds
- Answer
- Expansionary
- Item
- Sell bonds
- Answer
- Contractionary
- Item
- Loose policy
- Answer
- Expansionary
- Item
- Tight policy
- Answer
- Contractionary
- Item
- More borrowing
- Answer
- Expansionary
- Right
- Contractionary
- Instructions
- Swipe each action towards the stance it belongs to.
Explanation
_Source: OpenStax Principles of Macroeconomics 3e (CC BY 4.0), Ch 15 'Monetary Policy and Bank Regulation', sections 15.1-15.5_