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
Solve the inequality 5x
Weegy: 5x User: Solve the inequality 5x Weegy: 5x User: Solve the inequality 12x Weegy: It will be c.x User: Solve the ...
4/23/2014 4:34:04 PM| 7 Answers
Simplify 5^-2 by making the exponent positive. A. 1/8 B. ...
Weegy: 5^-2 = B. 1/5^2
4/23/2014 8:59:53 PM| 4 Answers
Solve for x. x - 8 = -20 -28 -12 12 28
Weegy: 6(x - 2) = 4, 6x - 12 = 4, 6x = 4 + 12, 6x = 16, x = 16/6, or 8/3 in simplest form. User: The sum of ...
4/23/2014 1:27:55 PM| 3 Answers
Branches within the ICS organization can be established: ...
Weegy: Branches within the ICS organization can be established Geographically or functionally.
4/23/2014 5:48:09 PM| 3 Answers
5x + 4y + 15 + 2x - 8y - 5=
Weegy: The answer for 5x - 4y = 12 is y = 1/4 (5 x-12). User: 8(5a - b) - 6(4b-4a)= Weegy: a^2 - 5a - 6 = (a + ...
4/23/2014 8:09:04 PM| 3 Answers
Which country is not a permanent member of the U.N. Security ...
Weegy: the country which is not a permanent member of the UN council is (c) China. User: Who holds veto power in the ...
4/23/2014 10:11:57 AM| 2 Answers
Zeller, Inc., has 50,000 shares of stock outstanding. Zeller declares ...
Weegy: Zeller, Inc., has 60,000 shares of stock outstanding. Zeller declares a dividend of $580,000. ...
4/23/2014 10:05:10 AM| 2 Answers
What is the European Union?
4/23/2014 11:36:33 AM| 2 Answers
The United States and its allies launched operation “Desert Storm” in ...
Weegy: The United States and its allies launched operation “Desert Storm” in response to Iraq’s invasion of KUWAIT in ...
4/23/2014 11:50:36 AM| 2 Answers
Weegy Stuff
S
L
P
C
P
C
1
L
P
C
Points 1849 [Total 9730]| Ratings 0| Comments 1849| Invitations 0|Offline
S
L
P
C
L
P
C
Points 1846 [Total 7233]| Ratings 0| Comments 1846| Invitations 0|Offline
S
1
L
C
L
Points 944 [Total 5747]| Ratings 4| Comments 904| Invitations 0|Online
S
1
L
1
L
P
Points 582 [Total 7259]| Ratings 2| Comments 562| Invitations 0|Offline
S
L
Points 480 [Total 2927]| Ratings 2| Comments 450| Invitations 1|Offline
S
L
1
1
1
Points 316 [Total 3582]| Ratings 7| Comments 246| Invitations 0|Offline
S
R
Points 267 [Total 379]| Ratings 6| Comments 187| Invitations 2|Offline
S
Points 218 [Total 218]| Ratings 6| Comments 138| Invitations 2|Online
S
Points 170 [Total 586]| Ratings 0| Comments 170| Invitations 0|Offline
S
1
Points 165 [Total 495]| Ratings 4| Comments 125| Invitations 0|Offline