Monetary Policy Is Best Described by Interest-rate Targets
Can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented. Must be described in terms of interest-rate targets. Monetary Policy Definition Types Examples Tools Can be described either in terms of the money supply or in terms of the interest rate. . Discretion Again 421 A. The money supply is increased which decreases the interest rate and causes investment spending output and employment to increase. Economics questions and answers. If uncertainty is due to unpredictable shift of the IS curve caused by sudden and unexpected shift in private investment in fixed assets and in residential construction and. Monetary policy can be described in either terms of money supply of interest rates. Cannot be accurately described in terms of the interest rate or in terms of the money supply. Monetary policy is a policy that a central bank of a country used to effec...
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