1. What would happen to total money supply in the US, if the Federal Reserve (Fed) raises the .. discmmt rate or the reserve requirement 7 A. When the Fed raises the discount rate, total money supply increases. B. When the Fed raises the discount rate. total money supply m. C. When the Fed raises the reserve requirement, total money supply increases. D. When the Fed raises the reserve requirement, total money supply is tmchanged. 2. The $1.9 trillion economic stimulus COVID-19 Stimulus Package or American Rescue Plan was signed into law by President Biden on March I l, 2021. This package aims to speed up the economic recovery from the COVID-IQ pandemic and ongoing recession in the United States. In macroeconomis, this package is an application of__? A. Trade policy ' B. Consumer Policy C. Monetary Policy D. Fiscal Policy 3. The ability of banks to create money has its source in which of the following 7 A. The 100 percent reserve requirement. B. The hanks' ability to issue currency (bank notes) of their own. C. Fractional-reserve banking, leak than 100% reserve requirement. D. The ability of the government to mint as much currency as it wishes. 4. Recall different interest rates we have talked about in this class. What is the rate of interest that the Fed Reserve (Fed) pays commercial banks on their deposits with the Fed ? A. Rate on reserves 13. Federal fund rate C. Discount rate D. Real interest rate 5. Which of the following statements is true regarding the natural unemployment rate 'P A. It is always at zero percent in the long mm B. It is decided upon by the federal govemrncnt'sjob market policy. C. It reects unemployment when an economy is in "t\" employment". D. It is the amount of unemployment in the economy, adjusted for the effects of ination