ECONOMICS
FISCAL POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cut in taxes
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higher amount of government spending
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investment in training and development
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Lower interest rate
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Detailed explanation-1: -This is a monetary policy that aims to increase the money supply in the economy by decreasing interest rates, purchasing government securities by central banks, and lowering the reserve requirements for banks.
Detailed explanation-2: -Expansionary Monetary Policy to Reduce Unemployment The goal of expansionary monetary policy is to increase aggregate demand and economic growth through cutting interest rates. Lower interest rates mean that the cost of borrowing is lower.
Detailed explanation-3: -Expansionary monetary policy is when a central bank uses its tools to stimulate the economy. That increases the money supply, lowers interest rates, and increases demand.
Detailed explanation-4: -monetary policy, measures employed by governments to influence economic activity, specifically by manipulating the supplies of money and credit and by altering rates of interest.
Detailed explanation-5: -The main instruments of the monetary policy are Cash Reserve Ratio, Statutory Liquidity Ratio, Bank Rate, Repo Rate, Reverse Repo Rate, and Open Market Operations.