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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

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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 word best describes the process by which the government controls interest rates and the money supply in order to influence the economy?

The word that best describes this process is "monetary policy." Through monetary policy, the government, typically via a central bank, adjusts interest rates and regulates the money supply to influence economic activity, control inflation, and stabilize the currency. This can involve actions such as changing the discount rate, open market operations, and adjusting reserve requirements.


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 phrase best describes the economic policy of Iaissez-faire?

The phrase that best describes the economic policy of laissez-faire is "minimal government intervention in the economy." This approach advocates for free markets, where supply and demand dictate economic activity without government regulation or interference. Proponents believe that allowing individuals to pursue their own economic interests leads to greater efficiency and innovation.

Related Questions

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?

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What word best describes the process by which the government controls interest rates and the money supply in order to influence the economy?

The word that best describes this process is "monetary policy." Through monetary policy, the government, typically via a central bank, adjusts interest rates and regulates the money supply to influence economic activity, control inflation, and stabilize the currency. This can involve actions such as changing the discount rate, open market operations, and adjusting reserve requirements.


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 Donald Lambro written?

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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.


What has the author Wassim N Shahin written?

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What phrase best describes the economic policy of Iaissez-faire?

The phrase that best describes the economic policy of laissez-faire is "minimal government intervention in the economy." This approach advocates for free markets, where supply and demand dictate economic activity without government regulation or interference. Proponents believe that allowing individuals to pursue their own economic interests leads to greater efficiency and innovation.


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.