Define monetary policy, Define monetary policy? What monetary measure can be accepted to

Define monetary policy

Define monetary policy? What monetary measure can be accepted to control the condition of excess demand?

It is the policy accepted by central bank exercising control over money rate of interest and credit situation. In the condition of excess demand, the following monetary measures are accepted.

A) Increasing the rate of interest.
B) Reducing accessibility of credit

View Complete Question

Related Questions in Microeconomics

Q : Product differentiation in market If

If new soap operas that, although same to the previous ones, all are advertised as original and new, the TV networks are engaging within: (i) bait and switch. (ii) product differentiation. (iii) monopolistic competition. (iv) dynamic game theory. (v)

Q : Maximum possible profitable firm A firm

A firm possessing important market power may suffer by managerial slack [X-inefficiency] and unessential high costs, which implies that, the firm: (i) is likely to be absorbed through a predatory rival. (ii) realizes less than the max

Q : Devaluation and depreciation of

Distinguish among devaluation and depreciation of domestic currency

Q : Problem on Equilibrium price What

What happens to equilibrium price if increase in demand is equivalent to increase in supply? Answer: In case of equivalent increase in demand and supply the equilib

Q : Financial Asset of Annual Income

Perpetuity is a: (w) life insurance policy which matures upon retirement. (x) nondepreciable piece of capital. (y) financial asset which pays its owner an annual income forever. (z) pyramid scheme as a chain letter.

Q : Different forms of capital account

Different forms of capital account transactions: A) Private Transactions: There are transactions which affect the liabilities and assets of individuals.

Q : Income Distribution and Satisfaction

Some researchers have determined that citizens of some prosperous countries [for example, Japan] explain themselves as “happy” far less frequently, onto average, than citizens of a few poorer nations [for example, Indonesia]. Nevertheless, almost all studi

Q : Saving transaction costs by locations

Economic rent by a parcel of land is positively associated to the: (w) savings in transaction costs yielded by its location. (x) amount of idle land adjacent to this. (y) time this has been held by the current landowner. (z) amount of natural flora an

Q : Help!! Why does a marginal benefit

Why does a marginal benefit curve slope downwards?

Q : Where is the price elasticity of supply

The price elasticity of supply as in below demonstrated figure is unitary within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1439492 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1947981
Asked

3,689

Active Tutors

1439492

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment