Question
The following sub-questions are about monetary policy and central banks. 33a) Does changing the money supply always require changing the monetary base? Explain considering all
The following sub-questions are about monetary policy and central banks.
33a)
Does changing the money supply always require changing the monetary base? Explain considering all options available to central banks.
Report question issue 33b)
Describe the implementation of the policy approach by central banks to achieve price stability. Explain the pros and cons of this type of policy approach.
Report question issue 33c)
More people start using online shopping. Will it affect money aggregates? Explain.
Report question issue 33d)
The central bank decreases the interest rate paid on excess reserves. How would it affect the central bank interest rates and the economy in general?
Report question issue 33e)
We know that a central bank can only control short-term interest rates. If the expectations theory was the correct theory to explain long-term interest rates, how can a central bank change long-term interest rates? Will your answer change if the segmented market theory was the correct theory? please give the full answer.
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