A policy that results in slow and steady growth of the money supply is an example of A-an “easy” monetary policy. B-a “passive” monetary policy. C-a “practical” monetary policy. D-an “active” monetary policy.
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A policy that results in slow and steady growth of the money supply is an example of
A-an “easy”
B-a “passive” monetary policy.
C-a “practical” monetary policy.
D-an “active” monetary policy.
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- Which of the following best describes an contractionary monetary policy? *a. more spendingb. more savingsc. increase in money supplyd. lower interest ratese. none of the choicesPlease the correct answer please Don't answer by Pen paper please Monetary policy is the macroeconomic policy laid down by the central bank of an economy.” In terms of the above statement, explain how monetary policy can be used to combat inflation.Which of the following is NOT a tool of monetary policy?A) Open market operationsB) Fiscal policyC) Reserve requirementsD) Discount rate.
- The most common definition that monetary policymakers use for price stability is Question 15 options: a) low and stable deflation. b) an inflation rate of zero percent. c) low and stable inflation. d) high and stable inflation.If the U.S. Congress passes legislation to raise taxes to control inflation, what kind of policy is this? Group of answer choices A. Expansionary monetary policy B. Contractionary fiscal policy C. Contractionary monetary policy D. Expansionary fiscal policyExpansionary monetary policy may prevent deep recessions with uncertain long-term consequences. However, as a result, firms, households, and the government accumulate significant amounts of additional debt, the payments for which may result in lower spending and investment and likely slower recovery. With that in mind, should central banks implement expansionary monetary policy or not?
- The Taylor Rule is an example of a. a monetary policy measure that always sets the money supply growth rate at 3 percent. b. rule-based monetary policy. c. contractionary monetary policy. d. discretionary monetary policy.Describe a situation where a central bank would want to implement expansionary monetary policy. Describe a situation where a central bank would want to implement contractionary monetary policy. Suggest a policy tool that the central bank (e.g., the Federal Reserve) can use for one of the above situations and explain how that policy would alleviate the situation.
