0
What economic policy does the government use when it controls the money supply?
Wiki User
∙ 11y ago
the term is dear money policy, rbi increases crr rate n bank rate to so that commercial bank will have less funds to give loans which would lead to increase in interest rates and decrease demand for loan,
now many investor will cut their plan of taking loan hence there would be less demand for it..........less demand will lead to either fall in price or a stable price of commodity for which loan is taken.........hence inflation is controlled
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What aspect of a government's economic policy deals with the money supply?
monetary policy
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
What is monetarism?
Monetarism is an economic theory that focuses on proper control of the money supply. Monetarists attest that a steady annual increase in the money supply is critical for economic growth. They have a strong belief in the competitiveness, and self-correcting abilities of "The Markets." Therefore, they do not believe in government intervention (discretionary fiscal policy), or monetary policy.
Decreasing the money supply involves which type of economic policy?
Decreasing the money supply does not involve any type of economic policy. It is what happens afterward that affects the economy. Decreasing the money supply will lead to higher interest rates.
Policies reducing levels of economic activity?
contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.
What aspect of a government's economic policy deals with the money supply?
monetary policy
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
What has the author Carl J Bauer written?
Carl J. Bauer has written: 'Against the current' -- subject(s): Economic aspects, Economic aspects of Water-supply, Government policy, Privatization, Water rights, Water-supply
What has the author R Maria Saleth written?
R. Maria Saleth has written: 'Evaluation of water institutions and water sector performance' -- subject(s): Economic aspects, Economic aspects of Water resources development, Government policy, Water resources development 'Water institutions in India' -- subject(s): Water, Hydrology, Law and legislation, Government policy 'Water challenge and institutional response' -- subject(s): Economic aspects, Economic aspects of Water-supply, Government policy, Resource allocation, Water quality management, Water-supply
What has the author Donald Lambro written?
Donald Lambro has written: 'Fat City' -- subject(s): Domestic Economic assistance, Government spending policy, Waste in government spending 'The Federal rathole' -- subject(s): Appropriations and expenditures, Executive departments, Management, Waste in government spending 'Land of opportunity' -- subject(s): Economic conditions, Economic forecasting, Economic policy, Entrepreneurship, Supply-side economics
What is monetarism?
Monetarism is an economic theory that focuses on proper control of the money supply. Monetarists attest that a steady annual increase in the money supply is critical for economic growth. They have a strong belief in the competitiveness, and self-correcting abilities of "The Markets." Therefore, they do not believe in government intervention (discretionary fiscal policy), or monetary policy.
What has the author Wassim N Shahin written?
Wassim N. Shahin has written: 'Money supply and deficit financing in economic development' -- subject(s): Budget deficits, Economic development, Finance, Government securities, Monetary policy, Money supply
How can fiscal policy be used to stimulate Australia's economic activity?
fiscal policy can be used to stimulate economic activity by increasing spending. this is done by reducing taxes and increasing government spending to increase supply and demand which has a flow on effect for individual spending.
Decreasing the money supply involves which type of economic policy?
Decreasing the money supply does not involve any type of economic policy. It is what happens afterward that affects the economy. Decreasing the money supply will lead to higher interest rates.
Policies reducing levels of economic activity?
contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.
What economic policies were favored by the republican party in the late 1800s?
Low taxes, low government spending, and isolationism for foreign policy.
Increasing taxes involves which type of economic policy?
Supply-side Economics
