Ask Question
BusinessBusiness
6 June, 20:18

In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to restore spending growth. decrease the rate of growth of the money supply to control inflation. do nothing. decrease the rate of growth of the price level to keep real growth high.

+3
Answers (1)
  1. 6 June, 20:27
    0
    Answer: increase the rate of growth of the money supply to restore spending growth.

    Explanation:an increase in money supply growth. If the Federal Reserve offsets a negative shock to aggregate demand with increased money growth: both inflation and real GDP growth will rise.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to restore ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Saekano: how to raise a boring girlfriend
Answers (1)
The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server.
Answers (1)
A supervisor finds the mean number of miles that the employees in a department live from work. He finds and. Which statement must be true?
Answers (2)
You should always read the fine print before signing a contract. O A True OB. False
Answers (2)
Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah's Cycles on February 1 for $1,000 (cost of goods sold of $600).
Answers (1)
New Questions in Business
You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases.
Answers (1)
An analytical procedure example is the comparison of: Multiple Choice a. Financial ratios of the current year to previous years. b. Recorded amounts of major disbursements with appropriate invoices. c.
Answers (1)
Mary sue owns 1,000 shares of qrs moving company. qrs pays a yearly dividend of $1.00 per share. what is the total annual dividend that mary sue will receive?
Answers (1)
To StaySafe around electricity, Ted needs to: A. Follow his gut instinct B. Follow procedures established by his co-workers C. Make sure electrical hazards are resolved immediately D. Practice electrical safety only when his employer is watching
Answers (1)
Tangible assets as well as intangible assets of a business need to be assessed for proper venture evaluation. a. True b. False
Answers (1)
Home » Business » In the case of a negative shock to aggregate demand, the central bank should: increase the rate of growth of the money supply to restore spending growth. decrease the rate of growth of the money supply to control inflation. do nothing.
Sign Up Forgot Password?