Which of the following is NOT a tool of monetary policy? Select one: a. Discount rate b. Reserve requirement ratio c. Moral Suasion d. Printing more money

Q: If the Fed sells $100 million of U.S. government securities, what happens to the quantity of money?

A: Open Market Operation:-  To keep the amount of money in circulation under control, the Federal Bank…

Q: a) Identify the four major tools of monetary policy. b) How can monetary policy address the problem…

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

Q: The current chairman of the Federal Reserve System is A) Milton Friedman. B) Alan Greenspan. C)…

A: ***Since the student has posted multiple questions, the expert is required to solve only the first…

Q: why should monetary policy be used ?

A: All central banks have three tools of monetary policy in common. First, all of them use open market…

Q: What is the basic focus of monetary policy? What are its drawbacks?

A: Monetary policy is the process through which a country's monetary authority controls the money…

Q: The four tools of monetary policy in a limited reserve environment, as presented in Chapter 16 of…

A: The objective of the question is to identify the correct set of tools used in monetary policy in a…

Q: Explain with the help of a diagram how monetary policy might destabilize an economy.

A: Monetary policy is difficult. In the best of times, it necessitates a thorough grasp of the economy…

Q: Which of the following is NOT an example of monetary policy       A. Lowering the discount rate…

A: Monetary policy is the policy which leads to change in the monetary component (interest rate) in the…

Q: Do this photo below represent the best  concepts of the monetary policy? Why?

A: The economics is a study of market and the various agents which comprises of the economy including…

Q: In the United States, the Federal Reserve sets the reserve requirement, which banks must meet…

A: Reserve requirements refer to the regulations and policies set by a central bank (such as the…

Q: List and define the three tools of monetary policy. How does the Federal Reserve use the tools of…

A: Monetary policy consists of changes in the money supply that affects the interest rates in the…

Q: List the three tools that the Federal Reserve could use to enact Monetary Policy.

A: Federal Reserve: It is central bank of the United States

Q: a)  The Federal Reserve Bank of the United States (i.e., the Fed) is responsible for financing the…

A: In an economy, the central bank is one that is responsible for managing the money supply and…

Q: Carefully explain how the Federal Reserve (Fed) will use each of the three monetary policy tools at…

A: The monetary authority of a country's policy is to manage either the interest rate charged on very…

Q: Why are bank accounts included in our definition of the money supply?

A: It is the total stock of money that is held by the people of a country at a particular time.

Q: Two types of monetary policy?

A: "Money supply of any country is in the control of central bank. Monetary policy is a policy with a…

Q: Which of the following is the role of the Federal Reserve System? Select one: a. Set the Required…

A: Federal Reserve system is the central bank authority just like the other countries whose function is…

Q: What are the monetary policy goals and how to achieve them using Monetary tools?

A: The goal of the central bank's monetary policy is to maintain control over the amount of money in…

Q: Monetary Policy: what are its goals? How does it work? Express your opinion about this matter

A: Monetary policy is tools available to the government in order to control the macroeconomic situation…

Q: )If the South African economy was operating at its potential Gross Domestic Product (GDP) capacity,…

A: Gross domestic product is the total market value of goods and sevices produced domestically during…

Q: What are the goals of monetary policy? Which goal is the most important or the principal goal?

A: Monetary policy is a type of economic policy that regulates the amount and rate at which an…

Q: What would be the consequences of eliminating monetary policy?

A: Monetary policy helps in adding money to the economy and that leads to lower interest rates. That…

Q: 1. Explain how a society would be without monetary standard.

A: A monetary standard is a set of rules and regulations which governs the supply of money in the…

Q: THREE (3) types of demand for money.

A:

Q: Why were monetary policy responses ineffective during the Great Depression?

A: The great depression was characterized by the fall in the aggregate demand. The fall in aggregate…

Q: What is monetary policy, and who is responsible for creating it?

A: Monetary policies are policies that are implemented to control the economy by a country's central…

IS-LM-PC Analysis

The IS (Investment Saving), LM (Liquidity Preference- Money Supply), and PC (Philips Curve) is the model that looks at the dynamics of output and inflation. It takes into account the central bank policy decision to adjust the inflation and real interest rate in the economy. It enables the economist to weather to priorities between employment and inflation rate analyzing the model. It is a practice-driven approach adopted by economists worldwide.  

IS-LM Analysis

The term IS stands for Investment, Savings, and LM stands for Liquidity Preference, Money Supply. Therefore, the term IS-LM model is known as Investment Savings – Liquidity preference money Supply. This model was introduced by a Keynesian macroeconomic theory which shows the relationship between the economic goods market and loanable funds market or money market. In other words, it shows how the market for real goods interacts with the financial markets to strike a balance between the interest rate and total output in the macroeconomy. This particular model is designed in the form of a graphical representation of the Keynesian economic theory principle. The output and money are the two important factors in an economy.