Ask Question
BusinessBusiness
2 May, 11:52

When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is

A) following an expansionary monetary policy.

B) following a contractionary monetary policy.

C) following a tight monetary policy

+2
Answers (1)
  1. 2 May, 14:33
    0
    A) following an expansionary monetary policy.

    Explanation:

    Central Bank through the Federal Reserve can influence money supply in the economy. If it causes the money supply to increase while keeping the aggregate demand constant, it is following an expansionary monetary policy. This can occur in various ways like through decreasing interest rates, buying bonds in the open market operations; known as quantitative easing, or by lowering the reserve requirement ratio for banks and other financial institutions.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is A) following ...” 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
Sadie sold 12 shares of stock to her brother, George, for $640 16 months ago. Sadie had purchased the stock for $880 two years earlier.
Answers (1)
Guardian Services Inc. had the following transactions during the month of April: Apr. 4. Purchased office supplies from Officemate, Inc. on account, $460. Apr. 9. Purchased office equipment, Inc. on account from Tek Village Inc., $1,820. Apr. 16.
Answers (1)
Juan Foods purchases a computer system in 2015 for $20,000. Its expected useful life is 5 years. At the end of 2015, it has to record depreciation on the computer system of $2,000. What is the correct journal entry to record the depreciation
Answers (1)
On April 12, Hong Company agrees to accept a 60-day, 10%, $9,000 note from Indigo Company to extend the due date on an overdue account.
Answers (1)
Which of the following outfits would best fit an office job? a. Neon green blouse, blue jeans, flip flops b. Brown polo shirt, khaki pants, dress shoes c. Pink polka dotted t-shirt, khaki pants, dress shoes d.
Answers (1)
New Questions in Business
Cole has a credit card bill of $3,100. His credit limit is $3,000. Is Cole using credit responsibly or irresponsibly? A. responsibly B. irresponsibly
Answers (1)
In the month of November Marigold Corp. wrote checks in the amount of $43300. In December, checks in the amount of $59239 were written. In November, $39630 of these checks were presented to the bank for payment, and $50932 in December.
Answers (1)
Donald and Charlene are married and do not have any children. They plan to ensure that the other will not be unduly burdened by debts in case one of them dies. Each plans to continue to work after the other one dies.
Answers (1)
Mike wants to open his own repair shop, and is considering using his savings of $30,000 to get it started. He is currently earning 3 percent interest on his savings.
Answers (1)
Which best describes what a central bank uses monetary policy to do? ensure that the government has a balanced budget influence financial institutions globally ensure that the government is sufficiently funded steer the economy away from recession
Answers (2)
Home » Business » When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is A) following an expansionary monetary policy. B) following a contractionary monetary policy.
Sign Up Forgot Password?