Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Monetary policies as instruments to promote economic growth Faced with an instability in economic growth caused by a recession or accelerated inflation, the Fed uses

Monetary policies as instruments to promote economic growth

Faced with an instability in economic growth caused by a recession or accelerated inflation, the Fed uses the open market operation to increase or decrease the available reserves of commercial banks which, in turn, will affect the amount of money available in the economy . In addition to the open market operation, the Fed has other tools available to promote growth, sustainability, and economic stability in a country. These tools have been used historically; A suitable example was the 2008 mortgage debt crisis.

  1. Using as a basis the premise presented, he argues about the intervention of monetary policy as instruments to promote growth, sustainability and economic stability of a country. (Give an example in detail).

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

International Political Economy

Authors: Thomas Oatley

6th Edition

1138490741, 9781138490741

More Books

Students also viewed these Economics questions