Discover new information and get your questions answered with IDNLearn.com. Ask anything and receive prompt, well-informed answers from our community of experienced experts.
Sagot :
The above case represents the case of Expansionary monetary policy.
Explain in detail.
- Short-term interest rates are lowered or the money supply is increased more quickly than usual as a result of expansionary monetary policy. It is implemented by central banks and accomplished through interest rate setting, reserve requirements, and open market activities.
- Expansionary monetary policy is a technique used by central banks to boost a flagging GDP and economy.
- Reduced reserve requirements for banks, increased purchases of government assets, and lower interest rates are the three tools the Federal Reserve uses to conduct an expansionary monetary policy.
- Inflation rates rise as more money is injected into the economy. It may benefit or hurt the economy, depending on the situation.
- The excessive expansion of the money supply could lead to levels of inflation that are unsustainable.
To know more about Interest here
https://brainly.com/question/25816355
#SPJ1
We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for choosing IDNLearn.com for your queries. We’re here to provide accurate answers, so visit us again soon.
