Need help with these two. THanks 1. If the Federal Open Market Committee (FOMC) decided to try to use expansionary monetary policy to stimulate GDP growth, what would they do? (you can answer this question in a few words). 2. If the Federal Open Market Committee used one of its tools to increase the money supply in the U.S., explain how that is intended to stimulate the economy? (Which curve is intended to shift to the right - Aggregate Demand or Aggregate Supply? Why would it shift to the right?)
Monetary Policy and Equation of Exchange
The monetary policy has been defined as the policy that is used by the Federal Reserve (the central bank of the US) or the central bank (the central bank of India is RBI) along with the use of the supply of money to accomplish certain macroeconomic policies. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.
Monetary Economics
As from the name, it is very evident that monetary economics deals with the monetary theory of economics. Therefore, we can say that monetary economics, is that part of economics that provides us with the idea or notion of analyzing money as a holding with its function, which acts as the medium of exchange, the store of value through which the buying and selling are done and also the unit of account. It also helps in formulating the framework of the monetary policy of a bank in an economy which ultimately results in the welfare of the people residing in that particular economy. The monetary policy of an economy also helps to analyze and evaluate the financial health of it.
Need help with these two. THanks
1. If the Federal Open Market Committee (FOMC) decided to try to use expansionary
2. If the Federal Open Market Committee used one of its tools to increase the money supply in the U.S., explain how that is intended to stimulate the economy? (Which curve is intended to shift to the right - Aggregate
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