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Explain how different monetary policies affect the money supply in the economy?
Wiki User
∙ 14y ago
"Explain how different monetary policies affect the money supply in the economy?"
Wiki User
∙ 14y ago
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How different monetary policies affect the money supply and economy?
Monetary policies can either make money move through the economy quicker or restrict it. When interest rates are low, money tends to flow through the system quickly.
Which type of monetary policies would the Federal Reserve most likely use when the economy is struggling?
Expansionary policies
What is the solution to control inflation in an economy?
Decreasing the money supply. Monetary policies are concerned with the increase or decrease of the money supply.
How monetary policy effects a business organisation?
A monetary policy affects a business organization directly. The economy and output n business is measured through money and lack of proper monetary policies would result in to poor performance.
What is the difference between a barter and monetary economy?
what is the difference between barter economy and monetary economy ?
How different monetary policies affect the money supply and economy?
Monetary policies can either make money move through the economy quicker or restrict it. When interest rates are low, money tends to flow through the system quickly.
Which type of monetary policies would the Federal Reserve most likely use when the economy is struggling?
Expansionary policies
What is the solution to control inflation in an economy?
Decreasing the money supply. Monetary policies are concerned with the increase or decrease of the money supply.
How does the Fed serve the nation's bank?
The Federal Reserve sets monetary policies for the United States. The Federal Reserve initiates policies and practices aimed at jump starting the economy.
How monetary policy effects a business organisation?
A monetary policy affects a business organization directly. The economy and output n business is measured through money and lack of proper monetary policies would result in to poor performance.
What is the difference between a barter and monetary economy?
what is the difference between barter economy and monetary economy ?
What is the difference between economic development and macroeconomics?
Macroeconomics is the study of the economy as a whole (as opposed to Microeconomics where the focus is on individual households and individual firms.) Monetary policies are one of the macroeconomic policies using interest rate and money supply to try to control the demand in an economy.
Financial Monetary Planning to achieve economic objectives?
Financial monetary policies like supply of money in the economy can directly impact the objectives of the economy therefore, various tools are used in financial monetary policies to achieve the objectives of the economy. For example, if the state bank(monitor of monetary policy) aims to increase the exports of the products in the international market then it can change the exchange rate of the country by increasing the money supply in the economy. This increase in money supply will lower the exchange rate of the currency and the products of the country will become cheaper in the international markets and as a result this will increase the exports of the country. On the other hand, it will also lead to the increase in inflation in the economy, therefore, such tools are very carefully chosen.
What is the Monetary Policy?
Monetary policy is economic policies usually guided by the central bank of a nation. The goals of monetary policy is often to promote economic growth while hold a low and steady inflation. The means of monetary policy is to adjust money supply or interest rate and in some cases regulation to cool off or boost the economy.
What are monetary incentive?
monetary incentive is increase ammount of money in economy sector!
Why do central bank an important role in the global economy?
Central banks control the foreign currency reserves that are used for international trade.They also set each country's monetary policies.
Why do central banks playing important role in the global economy?
Central banks control the foreign currency reserves that are used for international trade.They also set each country's monetary policies.
