Monetary policy cloned 4/15/2022

Last updated over 3 years ago
13 questions
1

What are the objectives of monetary policy?

1

Distinguish between expansionary and contractionary monetary policy.

1

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

1

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

1

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

1

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

1

Define term a

1

Define term b

1

Define term c

1

Define term d

1

Define term e

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

1

Easy monetary policy may be ineffective in a recession.

1

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