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Q: How will the monetary policy accommodate expansionary fiscal policy to maintain interest rate?
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How does a expansionary monetary policy affect the interest rate overall price level and GDP?

expansionary monetary policy increases money supply by lowering interest rates


How does increasing money supply affect expansionary monetary policy?

Expansionary Monetary Policy is adopted by the monetary authorities to increase the money supply of an economy. If money supply is increasing, and central bank adopts an expansionary monetary policy, it would result in inflationary pressures.


Definition of monetary policies?

Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates in order to combat inflation. Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation. More useful Information here: www.vinayakjobs.com .


When and why the fed use expansionary monetary policy?

I don’t know the answer .help


What monetary policy tool is considered an expansionary tool?

Decreasing the discount rate.


What is it called when a nation prints too much money?

An expansionary monetary policy.


Which scenario indicates that an expansionary monetary policy is needed?

The economy has been growing rapidly.


What does not describe the buying of the US treasury bonds by the federal reserve?

it is part of expansionary monetary policy


And what does not describe the buying of US treasury bonds by the federal reserve?

it is part of expansionary monetary policy


What is meant by monetary accommodation of fiscal expansion?

This is a situation where monetary authorities are accomomdating the effects of expansionary fiscal policy with the aim of stopping the crowding out of investors.


Which of the following does not describe the selling of U.S. Treasury bonds by the Federal Reserve?

it is part of expansionary monetary policy


What type of policy does the fed to counteract a contraction?

The fed uses an expansionary monetary policy when dealing with a contraction. On the other hand, when dealing with a expansion that is resulting in higher interest rates, the fed uses a tight money policy.