sissicharles8088 sissicharles8088

19-07-2022
Business

contestada

What are the results of contractionary monetary policy, which intends to slow down the economy, and what are not

Respuesta :

ewomazinoade ewomazinoade

29-07-2022

The following are results of contractionary monetary policy:

raises interest rate
increases investment spending
reduces money supply

The following are not results of contractionary monetary policy:

increases real GDP in the short run
increases consumer spending
increases aggregate demand in the short run

What is a contractionary monetary policy?

Monetary policy are policies taken by the central bank of a country to shift aggregate demand and / or change the money supply in the economy.

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. Reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

To learn more about monetary policy, please check: brainly.com/question/3817564

#SPJ1

Ver imagen ewomazinoade

Answer Link

ACCESS MORE ACCESS MORE ACCESS MORE ACCESS MORE

Otras preguntas

Which OSI Layer provides an interface between the network protocol stack and networked services such as file & print services, database services, messaging

If M is the number of miles per gallon a car gets, and L is the number of liters it takes to go 100 km,find a mathematical equation that lets you convert M to L

Which rhythm element used in hip-hop music stresses the off-beats or weak beats in a measure? Question 17 options: downbeat syncopation upbeat toasting

what were the major factors that led to President Trump being elected? What were some of the key issues and events that led to this outcome? What part did the O

Biological and environmental factors that are associated with a certain historical event, such as the bombing of Pearl Harbor, can be considered what?

(05.03) What is the rate of change and initial value for the linear relation that includes the points shown in the table? x y 1 20 3 10 5 0 7 -10 a. init

One of the reasons it's so terrifying to tell a romantic partner that you love him or her for the first time is communication is _______.

A positively charged insulating rod is brought close to an object that is suspended by a string. If the object is attracted toward the rod we can conclude: a. t

An earthquake P wave traveling at 7.7km/s strikes a boundary within the Earth between two kinds of material.If it approaches the boundary at an incident angle o

In the Linux Bash shell, the ____ key combination moves the cursor to the position just before the first character of the next word.