If the domestic currency depreciates, A) using a graph of aggregate demand and supply EXPLAIN how lags in this policy process (mentioned in (a)) can result in undesirable fluctuations in output and inflation.
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If the domestic currency
A) using a graph of aggregate
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- A goal of monetary policy and fiscal policy is to a. offset the shifts in aggregate demand and thereby eliminate unemployment. b. enhance the shifts in aggregate demand and thereby increase economic growth. c. enhance the shifts in aggregate demand and thereby create fluctuations in output and employment. d. offset shifts in aggregate demand and thereby stabilize the economy.Describe three ways in which the interest rate changes implemented in an expansionary monetary plan by the Fed would work their way through the economy in order to improve economic conditions. How would changed interest rates affect business, households, governments, and those involved in imports/exports?Current U.S. monetary policy is best described as: Aimed at keeping inflation low and stable and growth high and stable Determining the denominations of a country's currency One of the most important functions of Congress Attempting to keep inflation constant at zero percent
- Country X, an open economy, has an increase in the demand for money which led to a significant increase in the real interest rates relative to the rest of the world. Explain how this increase in interest rates will affect each of the following for the Country X. Investment The international value of its currency Exports Using a correctly labelled aggregate demand and aggregate supply diagram, show how the change in investment you identified in part (a) will affect each of the following in the short run. Output The price level Identify one fiscal policy action that could counter the effect identified in part (b). Explain how this policy will affect each of the following. Output The price level Nominal interest rates i. Identify one monetary policy action that could counter the effects identified in part (b).…Country X, an open economy, has an increase in the demand for money which led to a significant increase in the real interest rates relative to the rest of the world. Explain how this increase in interest rates will affect each of the following for the Country X. Investment The international value of its currency Exports Using a correctly labelled aggregate demand and aggregate supply diagram, show how the change in investment you identified in part (a) will affect each of the following in the short run. Output The price level Identify one fiscal policy action that could counter the effect identified in part (b). Explain how this policy will affect each of the following. Output The price level Nominal interest rates i. Identify one monetary policy action that could counter the effects identified in part (b).…Country X, an open economy, has an increase in the demand for money which led to a significant increase in the real interest rates relative to the rest of the world. Explain how this increase in interest rates will affect each of the following for the Country X. Investment The international value of its currency Exports Using a correctly labelled aggregate demand and aggregate supply diagram, show how the change in investment you identified in part (a) will affect each of the following in the short run. Output The price level Identify one fiscal policy action that could counter the effect identified in part (b). Explain how this policy will affect each of the following. Output The price level Nominal interest rates i. Identify one monetary policy action that could counter the effects identified in part (b).…
- Mention any potential unintended consequences or risks associated with the current monetary and fiscal policy stance in Australia.Current U.S. monetary policy is best described as: Answer Aimed at keeping inflation low and stable and growth high and stable Determining the denominations of a country's currency One of the most important functions of Congress Attempting to keep inflation constant at zero percentDescribe the monetary policy framework of the Central Bank of Azerbaijan Republic for 2021. Low and stable inflation is the prerequisite for maintaining living standards of the population, shaping favorable environment for business activities, improving access of the population and businesses to finance and credibility of the national currency. The Central Bank’s monetary and exchange rate policies are critical in maintaining price stability and managing inflation expectations.
- An economy is currently experiencing inflation that exceeds the target rate set by the central bank. Identify and explain the benefits to an economy that stem from having price level stability.To fix a negative supply shock in an economy, ___________should be used. a. contractionary monetary policy b. demand-side fiscal policy c. supply-side fiscal policy“The Bank of England announces its intention to buy dollar-denominated assets by selling gifts in order to devalue the pound against the dollar and stimulate aggregate demand.” Comment and Explain