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.
When the relative price of a resource decreases, we would usually expect a firm to employ less units of: (w) that resource due to the substitution effect. (x) that resource because of the output effect. (y) complementary resources due to the substitut
A firm's total profit can be computed as all of the given except w) total revenue minus total cost. x) average profit per unit times quantity sold. y) (price minus average total cost) multiply with times quantity sold. z) marginal profit times quantity sold.
Define the Revenue Concept in brief.
States the Demand Forecasting in terms of production?
This supply of labor worker is roughly unitarily wage elastic as the wage rate increases from: (1) $5 per hour to $10 per hour. (2) $5 per hour to $25 per hour. (3) $10 per hour to $25 per hour. (4) $10 per hour to $40 per hour. (5) $25.01 per hour to
States the term fixed cost in briefly.
Who is the father of economics and what is wealth definition of economics?
The income effect of a small change within the wage rate for that worker most strongly exceeds the substitution effect at a wage rate of: (1) $5 per hour. (2) $10 per hour. (3) $10 per hour to $25 per hour. (4) $25 pe
If compared along with average high school graduates, in that case average Americans along with college degrees: (1) uniformly earn more at every point over their whole lives. (2) earn more primarily early throughout their careers. (3) earn more, but only later during
A firm which provides its workers along with substantial general training tends to: (1) retain such individuals by paying them the relatively highest wage premiums. (2) require workers to sign legal contracts of peonage and indenture. (3) increase wor
18,76,764
1956579 Asked
3,689
Active Tutors
1430309
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!