Federal Reserve
Federal reserve
The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
they want money
"Explain how different monetary policies affect the money supply in the economy?"
Federal reserve
The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.
Money supply is determined exogenously by the monetary authority usually central bank of a country.
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
they want money
"Explain how different monetary policies affect the money supply in the economy?"
Exogenous supply of money refers to the portion of the money supply that is determined by external factors or authorities, rather than by the market itself. This typically involves central banks or government policies that inject or withdraw money from the economy through mechanisms like open market operations, reserve requirements, or interest rate adjustments. In this context, the money supply is influenced by deliberate actions rather than being solely driven by demand and supply dynamics within the economy.
The total supply of money in circulation in a given country's economy at a given time.
In a market economy, the money incomes of individuals depend primarily upon
The value of money in an economy is determined by factors such as supply and demand, inflation rates, interest rates, and overall economic stability. These factors influence how much a currency is worth in relation to goods and services, as well as other currencies.
Inflation
In an economy, the quantity of money is measured by the Money Supply. This is the amount of money available in an economy in a specific period of time.