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Monetary policy cloned 4/15/2022

Last updated over 4 years ago

13 Nsɛmmisa

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Determine whether the following statements are true or false. Explain your answers.

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1.

What are the objectives of monetary policy?

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2.

Distinguish between expansionary and contractionary monetary policy.

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3.

Why do you think expansionary monetary policy is also called an ‘easy monetary policy’?

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4.

Why is contractionary monetary policy also known as a ‘tight monetary policy’?

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5.

What are the components of aggregate demand that monetary policy can inﬂuence?

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6.

Using diagram, show how the government can use monetary policy when there is a recessionary gap

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7.

Define term a

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8.

Define term b

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9.

Define term c

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10.

Define term d

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11.

Define term e

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12.

Easy monetary policy may be ineffective in a recession.

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13.

Counter-cyclical monetary policy involves lowering interest rates in the upswing of the business cycle and raising interest rates in the downswing.