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Loose or tight

Exercise and reference answers

Upper category
Loose
Lower category
Tight
Items
  1. Category
    Loose
    Item
    Lower rate
  2. Category
    Loose
    Item
    More loans
  3. Category
    Loose
    Item
    Ends slump
  4. Category
    Loose
    Item
    Buys bonds
  5. Category
    Tight
    Item
    High rate
  6. Category
    Tight
    Item
    Less loans
  7. Category
    Tight
    Item
    Cools boom
  8. Category
    Tight
    Item
    Sell bonds
Instructions
Send each clue to the loose policy track or the tight policy track.

Explanation

_Source: OpenStax Principles of Economics 3e, Chapter 28, Monetary Policy and Bank Regulation._
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