Illustrates the term monetary policy
Illustrates the term monetary policy?
Expert
Monetary Policy:
It refers to the programs adopted through the central bank to control the supply of money. The central bank may resort to open market operations, variations in bank rate or changes within the variable reserve ratio. There open market means the purchase and sale of government securities and bonds. Within the boom period the central bank sells government securities and bonds to the public that helps to withdraw money by the public. Throughout periods of depression the central bank purchases government securities that increase the cash supply in the economy. It helps to increase investment.
The central bank purchase government securities that raise the cash supply in the economy. It assists to increase investment. The central bank might change the bank rate or rediscount rate. The bank rate is the rate at which commercial banks borrow from central bank. When the central bank raises the bank rate the commercial banks in turn will increase their discount rates for the public. It discourages public borrowing and this decreases investment. Throughout the depression the bank rate is lowered that will end up the raised investment. The central bank can control the money supply by changing the variable reserve ratio. While the central bank needs to reduce the credit creation capacity of commercial banks, this will raise the ratio of the deposits to be held through the commercial bank as reserve along with the central bank.
Explain the different types of income elasticity of demand.
A backward bending supply curve for labor arises while: (w) firms wish to hire only a specific quantity of labor. (x) there is a change in the elasticity of resource supply. (y) workers prefer leisure over added income above several wage. (z) minimum
What are the differences between differential cost and explicit cost?
All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training
When the income effect of a wage raise is more powerful than the substitution effect, in that case the: (i) labor supply curve will be “backward bending.” (ii) unemployment rate will rise since more people will be av
As per most conventional theories of the labor market, the: (w) supply curve of labor is positively sloped since higher wages attract additional workers in the labor market. (x) firms should contend with increasing returns from additional employment.
All profit-maximizing firms will hire further labor up to the point where is the: (w) average physical product of labor equals the nominal wage. (x) last unit of labor adds equally to total revenue and total cost. (y) marginal product of labor is at i
Cheating on agreements is a common problem along with firms which engage in the formation of: (1) predatory prices. (2) game theory groupings. (3) cartels. (4) pure competition. (5) asymmetric payoffs. Can someone explain/help me w
What is Diminishing Returns to Scale?
Assume that male nurses are paid more than female nurses for same work. When an “equal pay for equal work” law is enforced and enacted, it may: (w) decrease the wages of male nurses. (x) not influence the wages of female nurses. (y) increa
18,76,764
1947129 Asked
3,689
Active Tutors
1413270
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!