The Monetarists believe that a monetary restraint can actually lower interest rates. How do they arrive at that conclusion?

Q: what are some of the Advantages and Disadvantages of Monetary Theory/Monetarism

A: According to monetary theory, a change in the money supply is a significant driver of economic…

Q: Which entity is responsible for conducting Monetary Policy? (a) Congress  (b) The President  (c)…

A: Monetary  policy is the policy of the Monetary Authority of the country that aims to control the…

Q: Why does the credit view imply that monetary policy hasa greater effect on small businesses than on…

A: Monetary policy is the policy made by the central bank, which involve management of the interest…

Q: in this time of pandemic, what do you think is the most appropriate monetary policy tools to be…

A: Monetary policy is the tool used by central bank to control money supply and entire monetary…

Q: How has monetary policy been used and how was it effective during the last few decades?

A: Monetary policy is the tool used by the federal government which affect the money supply of the…

Q: On which of the following do monetarists and Keynesians disagree? A. Deflation causes unemployment…

A: Aggregate supply curve in Monetarists model is vertical straight line at the full employment…

Q: the Federal Reserve attempts to grow the money supply in a recession. How does such a stimulus…

A: It's commen policy that central bank increase money supply in an economy during recession period.

Q: Inflation in the UK, Europe and in the United States has remained relatively low in recent years -…

A: New Keynesianism is a school of thought based on macroeconomic and microeconomics principles. It…

Q: Explain through three monetary instruments how can the Central Bank reduce unemployment ratio?

A: Monetary policy is used by central banks to control the amount of money in a country's economy. A…

Q: The central bank announces that it expects inflation to be relatively low while unemployment rises…

A: The monetary policy refers to a policy used by the central bank of an economy to boost the aggregate…

Q: List the three tools that the Federal Reserve could use to enact Monetary Policy.

A: Federal Reserve: It is central bank of the United States

Q: Why did Friedman and the Monetarists believe that monetary misuse accompanied every severe recession…

A: Inflation means the rise in the price level of goods and services in an economy. It means as the…

Q: Can you provide more details on the functions of monetary policy. Examples would really help

A: The monetary policy-related approach expands liquidity to make economic development. It lessens…

Q: The monetary policy video showed that the "monetarists" are opposed to using monetary policy as a…

A: An economic theory that focuses on the effects of the macroeconomic factors of the supply of money…

Q: The monetarists believe that interest rates can move in the opposite direction from the conventional…

A: Answer-Need to find- The monetarists believe that interest rates can move in the opposite direction…

Q: Explain the difference between the Keynesian and the monetarist views on how an increase in the…

A: Keynesian economics emphasizes fiscal policy to control the business cycles in the economy. Keynes…

Q: According to Monetarists, the price level is likely to remain stable over time if the money supply…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Why might a central bank choose to monetize the debt,knowing that it could lead to higher inflation?

A: Debt monetizing refers to the sponsoring of government expenditures by the monetary authority of the…

Q: According to Monetarism, when does an increase in money supply change only price level and not Real…

A: Monetarism is an economic and financial principle that claims that by regulating the level of rise…

Q: Monetarists think that an increase in the money supply will stimulate the economy because it will…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How can monetary policy address the problem of inflation?

A: Inflation refers to the increase in the price level in the economy. As the price level increases,…

Q: According to Monetarists, what should the government do if unemployment is 4% and inflation is 12%?…

A: For monetarists, the best thing about the economy is to look at the supply chain and allow the…

Q: Are you concerned about the inflation come back due to such easy monetary policy with zero interest…

A: The pace at which prices keep rising over a certain amount of time is referred to as…

Q: Should you make William Jennings Bryan with his free-silver movement (easy money) or Grover…

A: The central banks use monetary policies to achieve certain economic goals. Expansionary monetary…

Q: how far can monetary measures control inflation

A: Inflation refers to the increase in the general price level of goods and services. The monetary…

Q: When would it be most appropriate for the Fed to increase the money supply: during a recession or…

A: Recession is a phase of business cycle, when the economic activities slow down, GDP of the economy…

Q: In what ways might monetary policy be superior to fiscal policy? In what ways might it be inferior?

A: Fiscal policy is a government tool that influence output, employment and prices in the economy. A…

Q: Why is it important to be aware of the different monetary theories?

A: Monetary Theory Definition It is widely accepted that the main driver of economic activity is a…

Q: Explain why Monetarists believe the Fed should have expanded the money supply during the Great…

A: Monetarist give importance to money in an economy.

Q: Is the Federal Reserve considered to be independent in its development and implementation of…

A: The government of the United States implements fiscal policy, while the Federal Reserve has the…

Q: How does based ruled monetary policy differ from discretionary monetary policy ?

A: The monetary policy is the tool of the monetary authority of a country by which it influences money…

Q: According to the monetarists, policy makers should follow a monetary rule, which means that  A) the…

A: Monetarist school of thought states that economic stability of a country depends on the growth rate…

Q: Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 billion and…

A: Money supply : $96 billion. Nominal GDP : $336 billion.

Q: Discuss the similarities and differences between monetary policy and fiscal policy as a tool to…

A: The monetary policies are those policies which are enacted by the central bank of a country to…

Q: Explain the monetaey policy

A: Monetary policies are a set of measures that a country's central bank can use to encourage long-term…