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: ]
Get an answer
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
Expert Answered
Asked 8/3/2012 2:42:57 AM
0 Answers/Comments
19,737,160 questions answered
Popular Conversations
Evaluate the following expression. (81)0 0 1 8 User: ...
Weegy: Answer : If m=2 and n= -1 To evaluate m0 - n2 is 2(0) - -1 (2) = 0 - -2 = =+2 or simply 2 User: Evaluate the ...
3/2/2015 11:47:48 AM| 6 Answers
Simplify 7 · 6 · 2h · d.
Weegy: Please state your question again. The one that you have put cannot be understood by Weegy! User: Simplify 7 · ...
3/2/2015 1:02:06 PM| 5 Answers
Solve. -6b = -15
Weegy: -6b = -15 15 - 6b = 0 b = 5/2 User: Fill in the blank with the appropriate number. ____ - 39 = ...
3/1/2015 7:14:02 PM| 3 Answers
Describe the location of the point that has the following ...
Weegy: First Quadrant. User: Find the value of 7 + 32 (-5 + 1) ÷ 2. User: What is the fractional equivalent of ...
3/2/2015 10:04:10 AM| 3 Answers
-6 + (-2)
Weegy: (-6)^-2 = 1/(-6)^2; = 1/36 User: 2/5*2/5
3/1/2015 7:42:50 PM| 2 Answers
Because the soil was depleted during the time of the Dust Bowl many ...
Weegy: moved westward to coastal states User: How did environmental changes in the Great Plains lead to changes in ...
3/1/2015 8:28:08 PM| 2 Answers
(b3)2
Weegy: B3 was an American pop boy band from New York. They were formed in 2001 and were first produced by O-Jay of ...
3/2/2015 10:45:03 AM| 2 Answers
Weegy Stuff
S
L
P
L
P
P
Points 105 [Total 7991]| Ratings 0| Comments 105| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
P
P
Points 69 [Total 16984]| Ratings 0| Comments 69| Invitations 0|Offline
S
1
L
L
Points 41 [Total 7542]| Ratings 0| Comments 41| Invitations 0|Offline
S
P
C
L
P
L
1
Points 31 [Total 7338]| Ratings 0| Comments 31| Invitations 0|Offline
S
Points 16 [Total 107]| Ratings 0| Comments 16| Invitations 0|Offline
S
Points 11 [Total 379]| Ratings 0| Comments 11| Invitations 0|Online
S
Points 10 [Total 240]| Ratings 1| Comments 0| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
S
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.