Economists consider “activist policymakers” as those who think that 

Assume that current output exceeds potential output.  Over time, we would expect _______ to ________, thereby causing ______ to decrease.  

The Federal Open Market Committee

Banks hold excess reserves for a number of reasons.  If banks decide to decrease their holdings of excess reserves, we will observe __________, all else constant.

Suppose that the Federal Reserve pursued a loose, or easy, monetary policy.  We would then expect _____ to ________, holding all else constant.

The Fed’s primary monetary liabilities is called the _____ and consists of ______ and ______. 

Banks will always hold some quantity of reserves.  On any given day, a bank’s total reserves equal the sum of

Your textbook describes what’s know as “instrument independence” with respect to monetary policy.  To what does this refer?  

Multiple assets are considered money but others, like stocks and bonds, are not.  What ultimately determines whether an asset is money?

Because of their ________ liquidity, ________ U.S. government securities are called secondary reserves.