Question and answer
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?
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. ]
Ask a question
Not a good answer? Get an answer now. (Free)
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.
Questions asked by the same visitor
The market where business sell goods and services to households and the government is called? User: What does Underemployment mean? User: What is the Bureau of Economic Analysis responsible for? User: Federal Reserve provides what info?
Weegy: The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. [ It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907[2][3][4][5][6][7]. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure ... (More)
Question
Business and Money|No Subcategories|Expert Answered
Asked 6/26/2012 1:17:22 PM
0 Answers/Comments
The largest source of household income in the U.S. is obtained from A. stock dividends B. wages and salaries C. interest earnings D. rental income
Weegy: The answer is B. wages and salaries. User: The market where business sell goods and services to households and the government is called the A. goods market B. factor market C. capital market D. money market User: Real gross domestic product is best defined as A. the market value of intermediate goods and services produced in an economy, including exports B. all goods and services produced in an economy, stated in ... (More)
Question
Business and Money|No Subcategories|Expert Answered
Asked 6/26/2012 1:39:43 PM
0 Answers/Comments
What are the factors that would influence the Federal Reserve in adjusting the discount rate?
Weegy: The largest autonomous factor is Federal Reserve notes. [ By conducting open market operations, imposing reserve requirements, permitting depository institutions to hold contractual clearing balances, and extending credit through its discount window facility, the Federal Reserve exercises considerable control over the demand for and supply of Federal Reserve balances and the federal funds rate. Through its control of the federal funds ... (More)
Question
Business and Money|No Subcategories|Expert Answered
Asked 6/26/2012 2:51:34 PM
0 Answers/Comments
How does a stimulus program (through the money multiplier) affect the money supply?
Weegy: It doesnt give way to inflation (More)
Question
Business and Money|No Subcategories|Expert Answered
Asked 6/27/2012 7:52:10 AM
0 Answers/Comments
16,916,653 questions answered
Popular Conversations
Ad Hominem
Weegy: A) ad hominem arguments
7/22/2014 10:50:04 PM| 2 Answers
Nearly all standing committees have several
7/22/2014 1:25:29 AM| 1 Answers
what is Marginal analysis
Weegy: Marginal analysis is the process of identifying the benefits and costs of different alternatives by examining ...
7/22/2014 1:25:47 AM| 1 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
Points 1754 [Total 20754]| Ratings 1| Comments 1744| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
Points 1712 [Total 16841]| Ratings 0| Comments 1712| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
Points 1396 [Total 13951]| Ratings 1| Comments 1386| Invitations 0|Offline
S
L
1
Points 1326 [Total 3510]| Ratings 2| Comments 1306| Invitations 0|Offline
S
L
1
1
1
1
L
1
Points 1021 [Total 7198]| Ratings 2| Comments 1001| Invitations 0|Offline
S
1
L
Points 868 [Total 3004]| Ratings 4| Comments 828| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 800 [Total 10408]| Ratings 0| Comments 800| Invitations 0|Offline
S
1
L
Points 708 [Total 4384]| Ratings 2| Comments 688| Invitations 0|Offline
S
P
C
L
P
L
1
Points 685 [Total 5739]| Ratings 4| Comments 645| Invitations 0|Online
S
Points 247 [Total 395]| Ratings 2| Comments 227| Invitations 0|Offline
Home | Contact | Archive | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.