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LS g . 07'!- 0 Source: Federal Reserve Bank of New York The gure above summarizes the Federal Reserve's conventional monetary policy stance from the
LS g . 07'!- 0 Source: Federal Reserve Bank of New York The gure 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 rate. The blue line shows the effective federal funds rate. (2 points) The graph illustrates a period of ____________________ . n loose monetary policy A - contractionary monetary policy /'\\ quantitative easing n tight monetary policy (2 points) Which of the following would increase the size of the scal multiplier? a marginal increase in the quantity of imports purchased by households a marginal decrease in the amount saved by households an increase in the tax rate a marginal decrease in the amount of consumption spending by households (2 points) Poorly timed discretionary macroeconomic policy can do more harm than good. Timing is usually a larger concern with policy than it is with policy. O expansionary; contractionary O contractionary; expansionary O monetary; fiscal O fiscal; monetary O none of these answers. It is similarly difficult to get the timing right for both fiscal and monetary policy."Ten years ago was also the unlikely start to one of the great success stories in developing-markets history. That's when a Marxist guerrilla group was at the gates of Bogota, ring shells into the Colombian capital. But the new government and rule of law ultimately prevailed, and foreign direct investment slowly returnedthen exploded as a normalcy took hold. Colombia's stock market has since surged twelvefold. Its Medellin-listed companies are the envy of Latin American investment bankers, and it enjoys affordable debt terms thanks to its investment-grade credit rating. Within a short decade, Colombia has gone from near-failed state to frontier curiosity to thriving ofcial emerging market." ~ Business Week, September 20, 2012 (2 points) Based on this excerpt, __________________ was the key factor that turned things around for this economy. the strong stock market attaining investment-grade sovereign credit rating establishing the rule of law foreign direct investment
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