The effectiveness of monetary policy is influenced by

Assignment Help Business Economics

Reference no: EM131174614

a. The time it takes for lower interest rates to make investment spending more profitable.

b. The willingness of Congress to implement it.

c. How responsive the money supply is to changes in taxes.

d. Reports by the Congressional Budget Office.

Reference no: EM131174614

Questions Cloud

Briefly comment on impact on the economy of this effort : Many people have argued about the wisdom of the "TARP" program that was implemented late in the Presidential term of President George W. Bush with the full approval of the Congress. Briefly comment on the impact on the economy of this effort and expl..

Trends suggest an erosion of state governing capacity : Identify what kinds of recent trends suggest an erosion of state governing capacity. Share one or more example. What are your thoughts on these changes? Are they for the better or the worse? Support your comments with assigned readings or other theor..

Change in price on consumer optimal choice : Make a diagram illustrating the effect of a change in price on a consumer’s optimal choice given the information below. Assume each consumer has well behaved preferences, that no consumer has kinky preferences, and that the optimal consumer choice wi..

Vertical portion of the aggregate supply curve : If the economy is in the vertical portion of the aggregate supply curve, according to monetarists, an increase in the money supply in the long run will

The effectiveness of monetary policy is influenced by : The effectiveness of monetary policy is influenced by

What is the basic principle behind supply-side economics : What is the basic principle behind supply- side economics? After supply-side policies were implemented in 1981, the economy pulled out of the 1980 recession and entered an expansionary period. How would a supply-side economist explain the success ..

What will happen to equilibrium price-quantity in markets : An unseasonably warm March is followed by a unseasonably cold April. This leads to a 30% reduction in the yield of apples. As a result, the price of peaches increases. Illustrate this situation with supply and demand curves (draw diagrams for both ma..

About the monetary system : Which of the following statements is not correct about the U.S. monetary system?

Wages and prices are sticky-we start at long-run equilibrium : Assume that wages and prices are sticky and that we start at a long-run equilibrium. What is the inflation rate at the initial long-run equilibrium (the point where we start)? After the negative real shock, what is the level of expected inflation for..

User Account

All Pages