1.

1.5 Percent 0.5 Source: Federal Reserve Bank of New York The figure above summarizes the Federal Reserve's conventional monetary policy stance from the beginning of 2020. The tan shaded area represents the Fed's target range for the federal funds ate. The blue line shows the effective federal funds rate. 2 points) The graph illustrates a period of O loose monetary policy O contractionary monetary policy O quantitative easing O tight monetary policy(2 points) Please consider the excerpt from the Wall Street Journal on May 3, 2021. Much of the trillions of dollars in global savings accumulated during the pandemic is held by richer, older people less likely to use it. (full story) "Use it\" in this excerpt refers to Give it to charity Purchase goods and services Purchase stocks and bonds Leave it in their savings account (2 points) Please read the excerpt below from the Wall Street Journal on May 4, 2021. Italy, Greece and Spain, hit hard in Europe's sovereign-debt crisis a decade ago, are once again running big budget deficits. Like President Biden, their leaders plan to spend on a grand scale to revamp their economies, betting that ambitious investments can give a lasting boost to growth. These countries could be saddled with some of the world's highest debt ratios if the gamble doesn't work, potentially destabilizing the eurozone. But if the return to big borrowing pays off, it will strengthen calls for a European fiscal union. If "ambitious investments" give a "lasting boost to growth" the investment must (Please choose the best answer.) O Must not increase the national debt. O Must shift out SRAS in the AS-AD framework. Must improve the production function. Must not be funded by deficit spending. O Shift out AD in the AS-AD framework