4 If nominal GDP (measured using current prices) rises by 3.5%, what is real GDP if inflation is 2.5% ? 5 If the Fed has short term rates at 2% and inflation is 6%. what are real short term interest rates ? 6 Fiscal Policy refers to Congress' power to tax, spend, and borrow B Short term Gov't monetary policy Changes in bank regulations D Buying and selling of Govt bonds by the Fed 7 Monetary policy is defined as A B Rules/regulations governing the nation's banks Printing of coin and paper money Policies which limit the interest rate banks can charge for loans Fed's effort to maintain U.S. economic health via the money supply reserves, and interest rates. D