Question

A central back engages in tight monetary policy in order to prevent inflation from undermining economic growth. Shift the agg

QUESTION 25 - 1 POINT A healthy economic climate usually involves some sort of market orientation at the making level. indivi

QUESTION 26.1 POINT In the Great Recession of 2008-2009, the Federal Reserve resorted to quantitative easing because... Selec

QUESTION 27 . 1 POINT The holding of a US government bond by a bank is an example of an). Select the correct answer below: O


Open market operations are decided by the Federal Open Market Committee but executed by... Select the correct answer below: t
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Answer #1

aggregate supply Pleice gal. (5) aggregate demand Real Crop.

The tight(contractionary) monetary policy occurs when central bank increases the interest rate and reduces the Money supply in the economy. The decrease in Money supply and increase in interest rate discourage business expansion and consumer spending and negativly impacts exporters, which can reduce aggregate Demand, due to which aggregate Demand shift left ward.

25. The correct answer is Microeconomic

Because the market orientation at microeconomic, individual and firm decision making level over all encourages the macroeconomic growth.

26. The correct answer is because it has better results than slashing fedral fund rate.

Because through quantitative easing the fed able to increase the money the supply, it provide more monetary stimulus and lower long term rate.

27 The correct answer is Assets.

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