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avalibilty of credit and money

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Q: Monetary policy seeks to influence the economy through what?
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Controlling money to influence the economy is called?

Fiscal policy is the controlling of money to have an overall influence of the economy. Fiscal policy is based on ideas from economist John Maynard Keynes.


Why does the Federal Reserve alter monetary policy?

The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.


What is the purpose of the monetary policy?

The purpose of the International monetary policy is tho survey the global economy.


What is the purpose of an international monetary policy?

The purpose of the International monetary policy is tho survey the global economy.


Governmental fiscal policy?

Governments do not influence fiscal policies, only monetary policy - Expansionary fiscal policy, where money is injected into the economy to create activity. - Contractionary fiscal policy, where money is withheld from the economy in the hope to control or even reduce inflation.


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 Setting monetary policy?

Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed from, and the total availability of money. Monetary policy make use of a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authorities has the ability to change the money supply and thus influence the interest rates for the sake policy goals.


Which of the following terms best describes the process by which the government controls interest rates and the money supply in order to influence the economy?

monetary policy


Which policy has more direct influence on individuals and businesses?

Monetary Policy.


Which policy has a more direct influence on individuals and businesses?

Monetary Policy.


What is the main goal of both fiscal and monetary policy?

The main goal of both fiscal and monetary policy is to stabilize the economy.


How do monetary policy control inflation?

Monetary policy can have an impact of inflation. The ideal state of the economy is a balance between inflation and unemployment at 4.3% which is only seen in a wartime economy.