WGU D089 Objective Assessment (NEW 2026/ 2027 Update) Principles of Economics Guide| Questions & Answers | Grade A| 100% Correct (Verified Solutions)

WGUl D089l Objectivel Assessmentl
(NEWl 2026/l 2027l Update)l Principlesl
ofl Economicsl Guide|l Questionsl &l
Answersl |l Gradel A|l 100%l Correctl
(Verifiedl Solutions)

QUESTION
Whatl happensl inl thel moneyl marketl whenl thel supplyl ofl moneyl increases?

Answer:
Moneyl supplyl shiftsl tol thel rightl andl interestl ratesl fall.



QUESTION
Whatl happensl inl thel moneyl marketl whenl thel moneyl supplyl decreases?

Answer:
Moneyl supplyl shiftsl tol thel leftl andl interestl ratesl rise.



QUESTION
Howl doesl expansionaryl monetaryl policyl impactl thel goodsl market?

Answer:
ADl increases,l pricel levell risesl andl GDPl rises.



QUESTION
Howl doesl contractionaryl monetaryl policyl impactl thel goodsl market?

Answer:
ADl decreases,l pricel levell fallsl andl GDPl falls

,QUESTION
Thel interestl ratel banksl chargel eachl other.

Answer:
Federall Fundsl Rate



QUESTION
Thel interestl ratel thel Fedl chargesl banks.

Answer:
Discountl Rate



QUESTION
Whenl thel Fedl buysl securities,l thel moneyl supply...

Answer:
Increases



QUESTION
Whenl thel Fedl sellsl securities,l thel moneyl supply...

Answer:
Decreases



QUESTION
Treasuryl bondsl arel anl examplel of...

Answer:
Securities

,QUESTION
Whenl thel Fedl lowersl thel requiredl reservel ratio,l thel moneyl supply...

Answer:
Increases



QUESTION
Whenl thel Fedl raisesl thel requiredl reservel ratio,l thel moneyl supply...

Answer:
Decreases



QUESTION
Whenl thel Fedl lowersl thel discountl rate,l thel moneyl supply...

Answer:
Increases



QUESTION
Whenl thel Fedl raisesl thel discountl rate,l thel moneyl supply...

Answer:
Decreases



QUESTION
Whenl thel FEDl lowersl thel interestl paidl onl reservesl atl thel FED,l thel moneyl
supply...

Answer:
Increases



QUESTION

, Whenl thel FEDl raisesl thel interestl paidl onl reservesl atl thel FED,l thel moneyl
supply...

Answer:
Decreases



QUESTION
Whol conductsl monetaryl policy?

Answer:
Federall Reserve



QUESTION
Whatl typel ofl monetaryl policyl doesl thel FEDl usel tol fightl al recession?

Answer:
Expansionary



QUESTION
Whatl typel ofl monetaryl policyl doesl thel FEDl usel whenl therel arel concernsl aboutl
inflationl inl thel economy?

Answer:
Contractionary



QUESTION
Expansionary

Answer:
Basedl thel graph,l whatl typel ofl monetaryl policyl shouldl thel FEDl use?



QUESTION