Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?
A: Inflation, fiscal, and monetary policies are good indications. If inflation is high, the money supply in circulating with greater injections than leakages. [ Government policies of interest rates and taxation (monetary and fiscal policy) are good indications of attempted government intervention to control the amount of money available on the market/ floating. ]
Get an answer
Original conversation
User: Currently, what indictors are evident that there is too much or too little money within the economy? How is monetary policy aiming to adjust this?

Weegy: Inflation, fiscal, and monetary policies are good indications. If inflation is high, the money supply in circulating with greater injections than leakages. [ Government policies of interest rates and taxation (monetary and fiscal policy) are good indications of attempted government intervention to control the amount of money available on the market/ floating. ]



User: How does monetary policy aim to avoid inflation?

Weegy: Monetary policy is the control of interest rates. [ The market psychology states that high interest rates will encourage savings rather than spending as one can earn more by depositing money in the bank and it is more expensive to take out loans in comparison to low interest rates. When inflation is high, interest rates will be raised to curb consumption. Inflation is usually the result of aggregate demand surpassing aggregate supply. With the limited amount of resources available, the supply for all goods and services are limited. When AD supasses AS, the price increases rapidly, which leads to high inflation. High interest rates discourage spending as taking out loans are more costly. This will lower the aggregate demand and eventually return the AD and AS to the equilibrium point or the comfort zone. ]



Question
Asked 6/27/2012 8:48:04 AM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
26,580,579 questions answered
Popular Conversations
Which term refers to the process by which volcanoes release carbon ...
Weegy: The term D refers to the process by wich volcanoes release carbon dioxide.
1/12/2018 12:11:58 PM| 2 Answers
Solve this equation: 2s + s + 12 = 132. A. s = 120 B. s ...
Weegy: 2s + s + 12 = 132 User: Simplify this expression: 13 + (–12) – (–5) = ? A. –6 B. 6 C. –30 ...
1/14/2018 6:19:10 AM| 2 Answers
A binomial consists of _______ terms. A. 2 B. 3 C. 1 ...
Weegy: A binomial consists of two terms. User: Which of the following is a monomial? A. 2 + xyz B. 2x + ...
1/14/2018 6:22:47 AM| 2 Answers
If two angles are supplementary and one of them is 30°, what is the ...
Weegy: Two angles are supplementary. The first angle measures 60 . The measurement of the second angles is 120 . ...
1/14/2018 6:48:01 AM| 2 Answers
Simplify this expression: 19 – (–8) – (–14) = ? A. 25 ...
Weegy: 19 ? (?8) ? (?14)
1/15/2018 10:29:20 PM| 2 Answers
Which unit do astronomers use for angular ...
1/18/2018 7:10:19 PM| 2 Answers
Which of the following is an example of a long-term climatic change? ...
Weegy: Ice age is an example of a long-term climatic change. User: In what times of year are tropical cyclones most ...
1/18/2018 8:30:25 PM| 2 Answers
3x = -39
Weegy: 3x = -39; User: All of the following were innovations that benefited farmers during the Second Agricultural ...
1/19/2018 1:53:25 PM| 2 Answers
Weegy Stuff
S
L
R
Points 633 [Total 925] Ratings 2 Comments 613 Invitations 0 Online
S
L
Points 121 [Total 4572] Ratings 0 Comments 61 Invitations 6 Offline
S
P
L
P
Points 70 [Total 188] Ratings 0 Comments 70 Invitations 0 Offline
S
Points 17 [Total 17] Ratings 0 Comments 17 Invitations 0 Offline
S
Points 12 [Total 12] Ratings 0 Comments 12 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
S
P
Points 5 [Total 44] Ratings 0 Comments 5 Invitations 0 Offline
S
Points 3 [Total 3] Ratings 0 Comments 3 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 1 [Total 2] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.