Expand or tighten
Exercise and reference answers
- Upper category
- Expand
- Lower category
- Tighten
- Items
- Category
- Expand
- Item
- Buy bonds
- Category
- Expand
- Item
- Lower rate
- Category
- Expand
- Item
- Low ratio
- Category
- Expand
- Item
- Easy loans
- Category
- Tighten
- Item
- Sell bonds
- Category
- Tighten
- Item
- Raise rate
- Category
- Tighten
- Item
- High ratio
- Category
- Tighten
- Item
- Less loans
- Instructions
- Send each action to the expansionary track or the contractionary track.
Explanation
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 14, Monetary Policy and Bank Regulation (CC BY 4.0)._