Question and answer
How is monetary policy aiming to adjust this?
monetary Of or relating to money, or to the mechanisms by which it is supplied to, and circulates in, an economy. [ In comparison, fiscal relates to public revenues (taxation) and public spending, debt, and finance. Read more: ]
Ask a question
Not a good answer? Get an answer now. (FREE)
Original conversation
User: How is monetary policy aiming to adjust this?

Weegy: monetary Of or relating to money, or to the mechanisms by which it is supplied to, and circulates in, an economy. [ In comparison, fiscal relates to public revenues (taxation) and public spending, debt, and finance. Read more: ]
scijoe21|Points 1995|

User: Currently, what indicators are evident that there is too much or too little money within the economy?How is monetary policy aiming to adjust this?

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. It would also depend on the economic zone to which the country concerned belongs to. Some zones show more financial development than others because they are piloted by those who are more willing to take business and investment risks. ]
Expert answered|Jecy|Points 2|

Question
Asked 8/3/2012 2:37:05 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
What are the potential consequences of a country having a large overall debt? User: yes, can you tell me what are the potential consequences of a country having a large overall debt? User: okay then if you where in the position to implement a solution for the country;s long-term debt, what would it be and why?
Weegy: One of the solution is to increase government taxes which can help to loosen or minimized the long term debt. Other alternative would be a decrease of the entitlement spending of the government (More)
Question
Business and Money|No Subcategories|Expert Answered
Asked 8/3/2012 2:42:57 AM
0 Answers/Comments
Home | Contact | Terms | Privacy | Social | ©2013 Purple Inc.
Ad
Popular Conversations
One number is 7 more than twice another. If their difference is 22, ...
Weegy: One number is 9 more than twice another. If their difference is 22, what is the larger number? answer is 37. ...
4/18/2014 11:15:41 AM| 4 Answers
Find the excluded value of the rational expression 2x + 6 4x – 8 ...
Weegy: D. 2 User: Multiply. State the Excluded value 5/2a x 3/a^2 Weegy: B.15/2a^3 where a =0 User: Multiply. ...
4/18/2014 2:09:56 PM| 3 Answers
genetic code
Weegy: Please ask your question about genetics. User: The Challenger was the first space shuttle.
4/18/2014 8:40:33 AM| 2 Answers
write 13.7 as a percent
4/18/2014 3:58:02 PM| 2 Answers
A substance that yields a cation plus the hydroxyl ion in water is ...
Weegy: In chemical terms, if a neutral atom loses one or more electrons, it has a net positive charge and is known as a ...
4/18/2014 4:17:24 PM| 2 Answers
define theme
4/18/2014 4:46:25 PM| 2 Answers
Define sustainable
4/18/2014 4:56:55 PM| 2 Answers
Weegy Stuff
S
L
P
C
L
P
C
Points 1491 [Total 6878]| Ratings 0| Comments 1491| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
Points 1441 [Total 9322]| Ratings 0| Comments 1441| Invitations 0|Offline
S
1
L
1
L
P
Points 454 [Total 7131]| Ratings 1| Comments 444| Invitations 0|Offline
S
L
Points 379 [Total 2826]| Ratings 2| Comments 349| Invitations 1|Offline
S
Points 149 [Total 565]| Ratings 0| Comments 149| Invitations 0|Offline
S
1
Points 138 [Total 468]| Ratings 3| Comments 108| Invitations 0|Offline
S
Points 120 [Total 120]| Ratings 5| Comments 50| Invitations 2|Offline
S
R
Points 120 [Total 232]| Ratings 5| Comments 60| Invitations 1|Offline
S
Points 114 [Total 758]| Ratings 1| Comments 104| Invitations 0|Offline
S
P
C
L
P
Points 76 [Total 3921]| Ratings 0| Comments 76| Invitations 0|Offline