Economics Question

CFA Level I
#1

i thought it would swap Expansionary and Contractionary from the situations it gives, like i feel like its backwards…what do you think?

Monetary policy is expansionary when the policy rate is greater than the neutral interest rate (real trend rate of economic growth + inflation target)

Contractionary when the policy rate is less than the neutral interest rate

#2

Monetary policy is said to be contractionary when the policy rate is above the neutral rate and expansionary when the policy rate is below the neutral rate.

#3

Just found it in Schweser - Book 2 on page 181.

#4

yes thank you i will check when I get home. I agree with what you said. What I quoted is from the Scweser Quick Sheet, it must be a mistake!