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Expansionary monetary policy typically lowers interest rates, which can lead to a depreciation of the national currency. A weaker currency makes exports cheaper and imports more expensive, potentially improving the current account balance by boosting export demand while reducing import consumption. However, if the policy results in increased domestic consumption and investment, it may also lead to higher imports, which could counteract some of the positive effects on the current account. Overall, the net impact depends on the relative changes in exports and imports.
What else can I help you with?
Which action has an expansionary effect on the economy?
Increasing government spending
What is non monetised deficit?
Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant
What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
high inflation
What social science might study the monetary effect on businesses after the cutting of the old-growth forest?
economics
This social science might study the monetary effect on businesses after the cutting of the old-growth forest?
E - Economics
Which action has an expansionary effect on the economy?
Increasing government spending
What is non monetised deficit?
Effect of expansionary fiscal policy which increases money demand and r but money supply reman constant
Is account payable an inflow or outflow or neither?
The recording of an account payable does not create any current effect on cash flow, so it is neither creates an inflow or outflow.
What should be a future effect upon the economy if a expansionary fiscal policy continues in an economy with an increasing budget deficit and growing national debt?
high inflation
What measure is used to account for a biological effect?
Roentgen is the unit used to measure and account for a biological effect.
Discuss the effects of monetary policy on business enterprises in Nigeria?
Monetary policy have both internal and external effect on business enterprises in nigeria. The internal effect comprises of such as expanding the output of the business,maintainig price stability etc. The external effect entails attainment of stable exchange rate. Therefore the main effect of monetary policy is to influence the level of nominal income by influencing either the real output or the price level on buisness enterprices.
How would you show the heating effect of a current?
how would you show the heating effect of a current?
What is account statement?
An account statement is a record of transactions and their effect on bank account balances.
What is an account statement?
An account statement is a record of transactions and their effect on bank account balances.
What is the presidents current salary?
At the present time, US presidents earn $400,000 annually. They also receive a $50,000 annual expense account, a $100,000 nontaxable travel account, and $19,000 for entertainment. These rates were put into effect in 2001.
What social science might study the monetary effect on businesses after the cutting of the old-growth forest?
economics
Example of stable monetary unit concept?
allows accountants to ignore the effect of inflation in the accounting records.
