answersLogoWhite

0


Best Answer

raise interest rates & sell securities

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What should the reserve bank do if it wants to pursue a contractionary monetary policy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

What actions would the fomc likely take if it were to pursue contractionary monetary policy using open market operations?

Please provide more information/context/clarification to help us answer this question. You can post your response in this answer text by clicking "Edit."


How might a country respond to a trade embargo?

It could pursue a policy of national self-sufficiency.


How is politics important to economics?

Politics affects economics in terms of what policy to pursue (such as monetary or fiscal policy)... should taxes be raised? should the government spend more on social welfare programs? should we restrict big businesses (many businesses are financial contributers to political parties... both conservative and liberal)? And of course through the rumored "political business cycle" which supposedly is when incumbent politicians take actions (when they are up for re-election) that makes favorable (but very short-term) economic standing. After elections, the economic policies supposedly return to normal (taxes go back up etc.)...


What influences government spending?

the macroeconomic objectives being pursued by the government will greatly influence government spending . a government aiming to reduce employment and promote economic growth is likely to pursue an expansionary fiscal policy , thus increasing government spending where as a government aiming to control inflation is likely to follow a contractions policy thus reducing its spending.


What goals does the government pursue in a socialist economy?

Equity