Which of the statements is true about monetary policy? a) Decrease in the money supply lowers...
Which of the statements is true about monetary policy?
a) Decrease in the money supply lowers short-term interest rates and encourage investment and consumption demand.
b) Monetary policy is determined by the Congress.
c) Higher money supply does not have a permanent effect on economic activity because it results only in a higher price level in the long run.
d) Monetary policy has the most immediate impact on the economy, but implementation of such a policy is usually slow.
Homework Answers
The true statement about monetary policy is:-
d) Monetary policy has the most immediate impact on the economy, but implementation of such a policy is usually slow.
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Which of the statements is true about monetary policy?
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