Answer: FED will make next steps: - increase in portfolio securities and discount loans - increase of reserves, SDR and gold - increase the payment of Treasury This steps may to increase the nation's money stock
If FED increases the amount of money there will be no difference in the composition of national income before and after the apply of this policy, because the change in...
Growth in GDP per capita is usually used to show the growth in a nation's standard of living. It is possible for a nation's GDP to grow while its standard...
When money supply increases in the short run, the supply curve shifts to the right and the rate of interest will fall. The surplus money will be used to purchase...
i) With an increase in money supply directly affects the intensity of the turnover of money, the demand for money and the lucrative demand in commodity markets.ii) With the increase...
CPI and GDP deflator are the commonly used price indices in measuring inflation. The rise in CPI and GDP deflator by 3% in the past six months is an indication...
An expansionary fiscal policy might include increase in government spending and/or reduced taxes while a contractionary fiscal policy might include decrease in government spending and/or increased taxes.
Contractionary monetary policy is when the economic growth lowers down to prevent inflation. The pursue of FED is to control inflation of the economy rate of 2%.However the FED wants...
