Suppose you are recommending monetary policy. The economy is experiencing a sharp and prolonged inflationary trend.
a. What change in open market operations would you recommend?
b. Explain how the change you advocate would affect the cash rate.
c. Explain how the change you advocate would affect the cost and availability of credit.
d. Use diagrams/graphs of the money market and also AD-AS to support your discussion.
1
Expert's answer
2019-05-09T11:16:07-0400
a. We can recommend to tighten money supply by selling more government bonds.
b. The change we advocate would increase the cost and decrease the availability of credit.
c. The supply of money will decrease, the aggregate demand will decrease too.
Learn more about our help with Assignments: Macroeconomics
Comments
Assignment Expert
09.05.19, 17:58
Dear Tirikau Miriati, If you have serious assignment that requires
large amount of work and hence cannot be done for free you can submit
it as assignment and our experts will surely assist you. Price depends
on complexity of your assignments and deadline. Please submit your
assignments to our control panel and you'll get price estimation.
Tirikau Miriati
09.05.19, 04:18
how can I pay the price???
Leave a comment
Thank you! Your comments have been successfully added. However, they need to be checked by the moderator before being published.
Comments
Dear Tirikau Miriati, If you have serious assignment that requires large amount of work and hence cannot be done for free you can submit it as assignment and our experts will surely assist you. Price depends on complexity of your assignments and deadline. Please submit your assignments to our control panel and you'll get price estimation.
how can I pay the price???
Leave a comment