Suppose the economy is in inflation, give your suggestion how to end this problem using monetary policy.

Q: Which of the following is a monetary policy to combat a recession 1. cutting taxes. 2. increasing…

A: Monetary policy is the action taken by the Central bank of the economy at the time of recession or…

Q: Faced with the possibility of recession explain how monetary policy may be used to rectify the…

A: A recession is that phase of a business cycle when the economic activity is below its normal level…

Q: they must be willing to accept a higher rate of unemployment.

A: Explanation: A contractionary policy refers to the government or financial organization's actions…

Q: central bank targets an inflation rate of 3%. She projects a long-term economic growth rate of 4%.…

A: Step 1:

Q: Who is in charge of the monetary policy?

A: The central bank is in charge of the monetary-policy in a country. For example, in the US, the…

Q: If the central bank desired to increase spending in the economy, using the instruments ofmonetary…

A: Monetary policy is used by the federal reserves also known as the central bank of an economy to…

Q: Explain the monetary Policy and with the help of Monetary Policy how we can solve the issues of…

A: Monetary policy: It refers to the policy which is used by the government to correct the various…

Q: Which of the following statements would most likely be made by someone following New Classical…

A: The follower of new classical economics does not believe in the active government intervention in…

Q: How does monetary policy handle the macroeconomic failures of inflation?

A: Monetary policy refers to the actions of central monetary authority of a country to influence money…

Q: Does the monetary policy have an impact on long-term economic growth or short-term economic?

A: Monetary policy includes the control of the money supply as a rule to keep costs steady and smooth…

Q: True or false: Changes in monetary policy can affect output in the long run, but not in the short…

A: Monetary policy is a set of tools used by a country's central bank to encourage long-term economic…

Q: The appropriate monetary policy action meant to decrease rapid inflation would be to increase a.…

A: The central bank is the monetary institution. The central bank controls the money supply in the…

Q: Using an appropriate graph, discuss the contractionary policies in order to control inflation.

A: Inflation is defined as the continuous rise in the level of price in the economy. In order to…

Q: The primary objective of monetary policy is a. To control base lending rates. b. To maintain price…

A: Monetary policy is a collection of measures. It can be used by a country's central bank to promote…

Q: In 1971, the German central bank, the Bundesbank floated the DM rather than avoid taking what two…

A: The German current account had almost returned to normal in 1970-71. Waves of international money,…

Q: Why are Keynesians more likely to advocate expansionary monetary policy to eliminate a recessionary…

A: Recessionary gap means when the GDP of a nation is lower than the full employment level of GDP.…

Q: If the government decides to raise taxes to prevent inflation, this is an example of a) monetary…

A: Inflation can be combated by decreasing the aggregate demand.

Q: When a central bank has driven down short-term nominal interest rates to nearly zero, the monetary…

A: A zero-bound rate of interest is a reference for short-term rates of interest to the lower limit of…

Q: Which of the following is an example of monetary policy? The government cuts taxes Defense spending…

A: In the event of a recession, the government uses an expansionary monetary policy to increase the…

Q: the government of a country increases the growth rate of the money supply from 5 percent per year to…

A: The quantity theory of money states that there is a equilibrium between the money market and good…

Q: Need help with both. These are true or false questions.  Monetary policy involves changes to…

A:

Q: In the long run, a change in monetary policy will affect only the aggregate price level. True or…

A: The aggregate price level alludes to the general or total cost of the aggregate labor and products…

Q: If you were the President, what measures or programs will you implement to help curb the inflation…

A: The term inflation exhibits the situation where the general price level in the economy rises and the…

Q: What monetary policy should do to increase employment in a country, use paragraphs and graphs(AD…

A: Monetary policies are related to balance the money supply and demand within an economy. If we…

Q: Current U.S. monetary policy is best described as:   Aimed at keeping inflation low and stable and…

A: To control the money supply and achieve sustainable economic goals central banks of the country use…

Q: Explain the concept of Monetary Policy and Inflation?

A: Monetary policy: It is the policy implemented by the central bank. This basically involves money…

Q: Inflation creates business uncertainties. What fiscal and monetary policy measures are taken to curb…

A: In inflation,price levels are high.Therefore to curb inflation money supply has to be decreased.

Q: Which of the following statements would most likely be made by someone following New Classical…

A: The new classical economists do not favor any active intervention in economic activities. They are…

Q: According to Keynesian economists, if people in the economy are not spending enough then the…

A: Keynesian the served the deserving value to the demand side of the economy when it comes influencing…

Q: Explain how inflation can control by using Fiscal and Monetary policy?

A: Inflation is the gradual loss of a currency's buying value over time. The increase in the average…

Q: Analyze monetary policy in order the generate macroeconomic stability

A: Introduction The central bank attempts to preserve price stability by limiting the amount of money…

Q: Policies and Policymakers “Bank Indonesia (BI) has emphasized that it will not print money to help…

A: Recession is the period of economic downturn. Here, employment starts to fall. As a result, income…

Q: The Taylor Rule is an example of   a.  a monetary policy measure that always sets the money supply…

A: The Taylor rule is a formula targeting monetary policy used by central banks. According to Taylor, a…

Q: The classical theory of inflation indicates that inflation is a monetary phenomenon. Why?

A: Classical theory is the economic theory which states that the economy is self-regulating and always…

Q: Analyze monetary policy in order the generate macroeconomic stability. Which kind of economic…

A: Introduction Monetary policy measures the nation's central bank can use to encourage significantly…

Q: Which of these is an alternative to monetary policy and aims to reduce inflation?

A: alternative to monetary policy is fiscal policy which is done by government of a country which…

Q: Suppose that Money Supply is 192.36 and Money Demand is 34.83 in Country A. What should be the…

A: Given the money supply = 192.36 Money demand = 34.83

Q: To encourage spending to offset a lower demand for goods and services, the government will implement…

A: Monetary policy refers to changes in money supply in the economy.

Q: What is the ideal balance between monetary and fiscal policy for a nation like Japan, where prices…

A: The marker equilibrium in which the AD curve crosses the AS curve is explained by the aggregate…

Q: What do you understand by demand-pull and cost-push inflation? Which monetary policy should be…

A: Inflation in an economy is related to rise in prices of commodities or decrease in purchasing power…

Q: What would monetary policy look like according to a 'policy mix'?

A: The economies around the globe work with the objective, and goals of increasing their economic…

Q: It is presently the focus of the BSP's monetary policy. * A. price stability B. inflation targeting…

A: The Bangko Sentral ng Pilipinas (BSP) is responsible for implementing monetary policy in the economy…