Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you help with the following questions related to monetary policies. This is about macroeconomics. Thank you. Please answer in the same order, clear and

Can you help with the following questions related to monetary policies. This is about macroeconomics. Thank you.

image text in transcribed
Please answer in the same order, clear and understandable. Note: Please read additional comments. A. Please carefully explain monetary policy, its performance, and its effects on short and long-term economic fluctuations. In your answer, use the aggregate supply and demand model as an example to answer the question by words. B. Please explain all the mechanisms that exist in expansionary monetary policy and contractionary monetary policy. C. Please carefully express the impacts of the monetary policy, expansionary and contractionary, with respect to income and the magnitude of prices. D. Please read the premise below and answer the following: Please argue regarding the intervention of monetary policy as instruments to promote the growth, sustainability, and economic stability of a nation. Important: add an example in your answer. Premise: With respect to a destabilization of economic growth caused by a recession or accelerated inflation, the federal reserve uses the open market operation to increase or reduce the available reserves of commercial banks which, in turn, will affect the amount of money accessible in the economy. Along with the operation of the free market, the federal reserve has other mechanisms available to promote the growth, sustainability, and economic stability of a nation. These mechanisms have been used in a traditional way. One example provided was the 2008 mortgage debt crisis

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Policies For Environmental Protection

Authors: Paul R Portney

1st Edition

1317310144, 9781317310143

More Books

Students also viewed these Economics questions