Monetary policy is a form of economic policy

Assignment Help Business Management
Reference no: EM131325761

Can someone help me with a nice post to a classmate

Contractionary monetary policy is a form of economic policy used to fight inflation which involves decreasing the money supply in order to increase the cost of borrowing which in turn decreases GDP and dampens. It is a type of policy or macroeconomic tool designed to combat rising in inflation or other economic distortions created by central bank or government interventions. When we look at Expansionary policy, we see that the macroeconomic policy seeks to expand the money supply to encourage economic growth or combat inflationary price increases. Now we need to look into the forms of expansionary policy. The first policy would be fiscal policy. This is when it comes from tax cuts, transfer payments, rebates and increase in government spending. The last form is known as monetary policy. This is when it is enacted by central banks and comes about through open market operations, reserve requirements and interest rates. When we look at the expansionary policy, we see that it should boost economic growth domestically. But, it also decreases net interest margins for the Canadian bank. It will squeeze the bank profits. Both increase spending which means this would generate more money for business, and even more taxes for government.

Reference no: EM131325761

Extra banana would increase utility

Inez reports that an extra banana would increase her utility by two units and an extra pear would increase her utility by two units and an extra pear would increase her util

Question regarding the inflation premium

Jonathan Corporation's 5-year bonds yield 6.35%, and 5-year T-bonds yield 4.75%. The real risk-free rate is r* = 3.60%, the default risk premium for Crockett's bonds is DRP

Should acme use a professional field data collection company

Acme Refrigerant Reclamation Company performs large-scale reclamation of contaminated refrigerants.- Should Acme use a professional field data collection company to gather the

Organizational changes to promote entrepreneurship

Identify a department issue observed in your current or prior work experience or a work related issue observed as a consumer. As a departmental manager who wants to encourage

Human resources management-phr class

Human Resources Management - PHR Class: Share one new insight that you have had about organizational effectiveness & development and workforce management from reading the ma

Which type of audit should be performed

Explain how you would describe to the management team the difference between a compliance and a substantive audit. Provide examples to help clarify your explanation.

Assign the resources required to work

A project plan cannot be considered complete until the resources have been assigned (including budget and cost estimate). This week, you will assign the resources required to

Describe a customer experience you have personally encounter

Describe a customer experience you have personally encountered where the goods or service or both were unsatisfactory (such as defective products, mistakes, poor service, an


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd