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Q: How is monetary policy aiming to adjust this?
A: 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: ]
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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|

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Asked 8/3/2012 2:37:05 AM
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