1. Explain Expansionary Monetary Policy and how it has been used to stimulate the U.S Economy during the Covid 19 crisis: ...... 2. If an economy opens to international Trade and the price in the world (Pw), is less than the domestic price, trade leads to: A) A trade balance of goods B) Exports of Goods C) Cash Flow Imports D) Imports of Goods 3. The federal funds rate is: A) determined in the real market by the aggregate supply and aggregate demand curves. B) determined in the money market by the supply of and demand for money. C) the interest rate that banks pay when they borrow directly from the Fed. set by Congress. 4. The reserve ratio is: A) the fraction of its loans that a bank holds as reserves. B) the fraction of its deposits that a bank holds as reserves. C) the fraction of its assets that a bank is required to hold. D) the fraction of its loans that a bank is required to hold. 5. Potential output: A) is greater in periods of expansion than in recessions. B) is the level of output that the economy would produce if all prices, including nominal wages, were fully flexible. C) varies with the price level. D) is dependent on the level of consumer confidence. 6. The aggregate consumption function depends on: A) expected future disposable income. B) wealth. C) disposable income, expected future disposable income, and wealth. D) disposable income