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How does raising the discount rate affect the money supply?
Decreases the money supply
How do changes in interest rates affect the money supply?
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
What policy involves changing the rate of growth of money supply in circulation in order o affect the cost and availability of credit?
laissez-faire
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
Why do changes in money supply not affect GNP?
According to the Federal Reserve the money supply consists of safe liquid assets such as U.S. currency, checking, and savings accounts that businesses and households can use to pay bills or purchase items. The money supply can be measured in different ways depending on which monetary aggregates are included in the calculation. A large increase in the money supply has been linked to an increase in the price level and growth in nominal gross domestic product which is not price adjusted for inflation. Changes in the money supply have not had a close correlation to changes in gross domestic product over the past several decades which is why the Federal Reserve has diminished the importance of changes in the money supply as it relates to conducting monetary policy.
How does raising the discount rate affect the money supply?
Decreases the money supply
How do changes in interest rates affect the money supply?
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
What policy involves changing the rate of growth of money supply in circulation in order o affect the cost and availability of credit?
laissez-faire
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
Why do changes in money supply not affect GNP?
According to the Federal Reserve the money supply consists of safe liquid assets such as U.S. currency, checking, and savings accounts that businesses and households can use to pay bills or purchase items. The money supply can be measured in different ways depending on which monetary aggregates are included in the calculation. A large increase in the money supply has been linked to an increase in the price level and growth in nominal gross domestic product which is not price adjusted for inflation. Changes in the money supply have not had a close correlation to changes in gross domestic product over the past several decades which is why the Federal Reserve has diminished the importance of changes in the money supply as it relates to conducting monetary policy.
Explain how different monetary policies affect the money supply in the economy?
"Explain how different monetary policies affect the money supply in the economy?"
What is the best instrument for controlling week to week changes in the money supply?
Open market operations is the best instrument for controlling week-to-week changes in the money supply.
The most used instrument for controlling week to week changes in the money supply is?
Open market operations is the most used instrument for controlling changes in the money supply.
Why is money supply curve vertical?
The money supply curve is assumed to be vertical by many textbooks based on the belief that the supply of money is unaffected by the changes in interest rates.
How does use of credit cards influence money supply?
Balls
Why is money suppy a major determinant of interest rates?
Because: Real interest rate occurs when real money demand = money supply When money supply changes, the equilibrium interest rates changes as this equation shows.
Will your credit history affect your application for a virgin money credit card?
Yes it will affect your chances for a virgin money credit card. This will happen becasue for any credit card that you are applying to you need a good enough credit score to qualify.
