how does an expansionary monetary policy influence the
slope of yield curve
Ans. Expansionary monetary policy increases the supply of money in the economy and also the slope of yield curve becomes upward Sloping.
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how does an expansionary monetary policy influence the slope of yield curve
Why may an expansionary monetary policy be less effective than a restrictive monetary policy? the Federal Reserve Banks are always willing to make loans to commercial banks which are short of reserves. commercial banks may not be able to find loan customers. fiscal policy always works at cross purposes with an expansionary monetary policy. changes in exchange rates complicate an expansionary monetary policy more than it does a restrictive monetary policy.
What is the organizational structure of the Fed? How does the Fed influence monetary policy? How has the Fed revised its lending role in response to the credit crisis? How is monetary policy used in other countries?
In your opinion, between the expansionary monetary policy and the contractionary monetary policy, which is more effective, and why?
Describe the effect of expansionary monetary policy in a recession. Contrast the results with no monetary policy action.
Question 4 2 pts According to the short-run Philliips curve, a more expansionary monetary policy that increases inflation will also: o reduce unemployment lower interest rates increase unemployment o have no effect on unemployment lead to higher GDP/capita
Think about the two types of monetary policy: expansionary and contractionary. Using what you have learned about open market operations, determine whether the noted actions below coincide with expansionary monetary policy or contractionary monetary policy. In a few sentences explain how. Action: Government securities are sold by the Fed. Expansionary Contractionary Action: The federal funds rate decreases. Expansionary Contractionary Action: The money supply increases. Expansionary contractionary
Illustrate expansionary monetary policy. Be sure to include the Federal Reserve, banks, and the impact of money and interest rates. Need assistance with graphing the expansionary monetary policy.
If the Fed orders an expansionary monetary policy, describe what will happen to the following variables relative to what would have happened without the policy: The money supply Interest rates Investment Consumption Net Exports The aggregate demand curve Real GDP The price level
2. (12 marks) Use a AD/AS diagram to illustrate the use of expansionary monetary policy to close an expansionary gap. a. Label the axes. b. Label the lines. And show c. Show the new AD line after the expansionary monetary policy is applied. d. Briefly explain what your diagram shows. e. Explain what monetary policies impact. the expansionary gap with the LRAS. RAS SRAS
The graph shows the effects of an expansionary monetary policy, which, over time, results in shifts of both the aggregate demand curve (AD1 to AD2) and the short-run aggregate supply curve (SRAS1 to SRAS2).If the dot indicates the economy's initial equilibrium state, place a second dot to show the economy's new equilibrium in the short run, given that the monetary policy move was completely expected.