1. background information of monetary policy and Fiscal policy. 2. Outline the differences between monetary policy instruments,...
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Question:
1. background information of monetary policy and Fiscal policy.
2. Outline the differences between monetary policy instruments, targets and objectives.
3. Provide details about a central bank's open market operations. Why are open market operations more advantageous than other tools of monetary policy?
4 "Interest rates can be measured more accurately and more quickly than money supply. Hence interest rate is preferred over the money supply as an intermediate target". Do you agree or disagree? Explain you answer.
5. How do expectations about the future by households and businesses affect the effectiveness of fiscal policy?
6. Write a paragraph on recommendation and policy implications
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