QUESTION 28

1. When a central bank wants to pursue an expansionary monetary policy, it can do which of these things?

   	a.	Raise interest rates
   	b.	Pump excess reserves into the banking system
   	c.	Loan money to banks only if they promise to loan it to consumers
   	d.	Increase the required reserve ratio

QUESTION 29

1. A proposed alternative to the Taylor Rule is the Mankiw Rule, which uses what factors to determine what the federal funds rate should be?

   	a.	the consumer price index core inflation rate over the past 5 years
   	b.	the consumer price index core inflation rate over the previous 12 months and the seasonally adjusted unemployment rate
   	c.	the consumer price index core inflation rate over the past 5 years and the seasonally adjusted unemployment rate
   	d.	the consumer price index core inflation rate over the previous 12 months

QUESTION 36

1. A leveraged buyout is an example of a __________ loan.

   	a.	long-term business
   	b.	short-term business
   	c.	short-term consumer
   	d.	long-term consumer