In your opinion, between the expansionary monetary policy and the contractionary monetary policy, which is more effective, and why?
In your opinion, between the expansionary monetary policy and the contractionary monetary policy, which is more...
Which kind of monetary policy would you expect in response to high inflation: expansionary or contractionary? Group of answer choices either could be deployed contractionary neither expansionary
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
Explain between expansionary policy and contractionary policy which one is better for the US economy now, and why.
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.
Question 72 1 pts Suppose there is a policy mix of contractionary monetary policy and expansionary fiscal policy. This combination of policies must cause: a reduction in i. an increase in output (Y). a reduction in Y. an increase in the interest rate (i). an increase in consumption.
ECO/372T: Principles Of Macroeconomics Compare and contrast expansionary and contractionary fiscal policy. Which is more appropriate today? Explain your answer.
WEEK 6: MONETARY POLICY AND FISCAL POLICY A healthy economy typically has low rates of unemployment and steady prices. Low rates of unemployment means that the economy is operating at its full potential. To ensure the economy continues to operate at potential GDP (full capacity where all savings are invested in production functions, and where all those who wish to work can find a job, and all other factors of production are fully utilized in the production function), governments use...
Differentiate between expansionary and contractionary fiscal policy -Use a keynesian Analysis..
because it Monetary policy that decreases the interest rate is called A. contractionary monetary policy, reduces AD. B. contractionary monetary policy; reduces SRAS. C. expansionary monetary policy; increases AD. D. expansionary monetary policy; increases SRAS. QUESTION 11 Other things the same, a fall in an economy's overall level of prices tends to A. raise both the quantity demanded and supplied of goods and services. B. raise the quantity demanded of goods and services, but lower the quantity supplied. C. lower...
Question 1 Fiscal policy will have its greatest impact if monetary policy is __________. contractionary expansionary accommodating opposing 3. When aggregate demand increases, firms with market power—like Walmart—are MOST likely to raise __________. prices output wages sales tax Question 4 The money supply fell during the Great Depression because __________. the monetary base also fell the public held less currency, and the banks held less excess reserves the public held more currency, and the banks held more excess reserves the...