Why might eliminating the central bank’s independence lead to a more pronounced political businesscycle?

Q: How does a central bank changes the money supply? Explain 3 main ways.

A: Changing the money supply in the economy is one of the most important functions of the central bank.…

Q: . Explain very briefly, what kind of monetary policy can be used to fight against recession and…

A: Monetary Policy and Bank Regulation determines policies that can be used by the central bank through…

Q: How does rule-based monetary policy differ from discretionary monetary policy (that is, monetary…

A: Macroeconomic policy refers to the policy that is involved with the operation of the economy as a…

Q: How does rule-based monetary policy differ from discretionary monetary policy (that is, monetary…

A: Monetary policy is the policy used by the central bank in order to influence the money supply and…

Q: hich of the following is NOT a function of the Federal Reserve? Multiple Choice   Supervise banks…

A: The Federal bank is the apex financial institution which has the following functions: It is the…

Q: Why would a central bank implement a monetary policy when the inflation level is higher than…

A: The economies tend to have many entities with them, all of which are concerned with performing…

Q: What are the primary goals of a central bank ? Why it is important for the bank to attain these goal…

A: The central bank is typically in charge of monetary policy and member bank regulation in modern…

Q: If a Central Bank decides it needs to decrease both the aggregate demand and the money supply, then…

A: Central bank can able to increase and decrease money supply with the help of various tools like…

Q: One of the advantages of monetary policy is its speed and flexibility, but there are limitations.…

A: Monetary policy is the policy of the central bank of the economy to influence the money supply in…

Q: When a central bank sells government bonds to a certain bank in the Monetarist view, the asset side…

A: In an economy, if Central Bank sells government bonds, it tries to decrease money supply in the…

Q: stablishin

A: The Federal Reserve System is the United States of America's central system of banking.It was being…

Q: What is one of the advantages of monetary policy over fiscal policy? 1) its control over the size of…

A: Monetary policy is implemented by the central bank of a country in which the bank increase or…

Q: In what sense can greater central bank independencemake the time-inconsistency problem worse?

A: Time-inconsistency is the issue that occurs when a decision-maker, in particular a policy-maker,…

Q: Economics In monetarist business cycle theory, increases in money growth temporarily level. real GDP…

A: In economics, different economists use different economic measured to deal with a specific economic…

Q: Why is it important for the central bank of a country to be independent? (i) The central bank needs…

A: Central banks controls the money supply and maintain the inflation rate at desirable level through…

Q: Differentiate between the monetary policy recommended by the Canadian monetarists and the current…

A: Canadian monetarists recommend that interest rate should not be lowered to a great extent and money…

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: The primary function of central banks is to:   a. Increase risk and volatility to increase…

A: The primary function of central banks is to control inflation and help reduce business cycle…

Q: List four argumnets that favor a central Bank that is brought under the control of goverment

A: A central bank is a national institution that offers banking and financial services to other…

Q: Which set of actions could the central bank use to increase the money supply?

A: Central bank can able to control money supply in an economy using various tools.

Q: Using a money market, a causal chain, and the Macro model, describe and show how expansionary…

A: The money market is the component of the economy which provides the short term funds and loans to…

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: Explain how the central bank can pursue contractionary policy through open market operations.

A: Contractionary monetary policy is done in order to reduce the aggregate demand, decrease output, and…

Q: Which of the following is NOT a function of the Fed? OPTIONS: Regulating the money supply Holding…

A: Federal Reserve is the central bank of United States of America. It is responsible for monetary…

Q: The incorrect statement related to the evolution of central banks: a. There were only about a dozen…

A: Central bank started in 18th century.

Q: The Board of Governors of the Federal Reserve is in charge of setting and overseeing monetary policy…

A: There are several ways an institution's management can be organized, but the most frequent is for a…

Q: What are the main transmission channels for monetary policy? Prove explanations in detail with an…

A: Monetary policy  Monetary policy is the tool of a central bank of the nation by which the central…

Q: The primary function of central banks is to: Answer a. Increase risk and volatility to increase…

A: In macroeconomics, the government and the central bank plays a very important role in stabilizing…

Q: Which of the following is NOT a function of the Federal Reserve? Multiple Choice O Lender of Last…

A: When talking about the Federal Reserve, it is the Central banking authority in the United States.

Q: Why would a central bank be concerned about persistent,long-term budget deficits?

A: Budget deficits refer to the situation of the government when the expenditure in the economy exceeds…

Q: Is it preferable for central banks to primarily target inflation or unemployment? Why?

A: Unemployment is a situation in which workers in the economy are willing to work at the prevailing…

Q: What regulations appear to allow a central bank's attempts to restrict the quantity of lending by…

A: In an economy, the central bank has the right to influence the functioning of financial institutions…

Q: What specific actions could the Federal Reserve take to decrease the money supply and therefore…

A: We are going to discuss the various tools used by Federal reserve to enact contractionary monetary…

Q: Describe in detail what an independent central bank means for an economy, and why is this…

A: A financial organisation that controls an economy's currency and money supply is known as the…

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: outline two reasons for a central bank choosing to purse a contractionary monetary policy, and…

A: A central bank may choose to pursue a contractionary monetary policy for a number of reasons. One…

Q: Explain what an independent central bank means for an economy, and why is this confirmation of…

A: The Central Bank  is defined as a financial institution which manages the money supply and the…

Q: The long-run effect of the central bank's policy is    in the inflation rate,    in the unemployment…

A: The policy of the central bank regarding the money supply in the economy is known as the monetary…