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nignag [31]
2 years ago
12

Expansionary monetary policy is more effective in an open economy because:.

Business
1 answer:
Ivenika [448]2 years ago
7 0

In an open economy, expansionary fiscal policy  increases in government spending can raise interest rates, which raises the dollar's value and pushes out net exports  is the reason of effectiveness Expansionary monetary policy.

<h3 /><h3>What is Expansionary monetary policy?</h3>

Expansionary policy, often known as loose policy, is a macroeconomic policy aimed at boosting economic growth.

Monetary or fiscal policy can both be used to expand the economy or a combination of the two.

It is part of Keynesian economics' overarching policy prescription for reducing the negative effects of economic cycles during slowdowns and recessions.

Thus, increases in government spending can raise interest rates is the reason of effectiveness Expansionary monetary policy.

For further details about the Expansionary monetary policy, click here:

brainly.com/question/4672250

#SPJ1

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Explanation:

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With regards to information provided in the question, the classification of goods is significant because the tariffs will vary depending on the classification.

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2 years ago
Assume that atlanta co. is producing motorcycles and selling them to u.s. customers. atlanta co. obtains all of its supplies fro
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3 years ago
Consider a 7-year bond with a 9% coupon and a yield to maturity of 12%. If interest rates remain constant, one year from now the
Llana [10]

Answer:

(C) Higher.

Explanation:

The computation of the present value in both the cases are as follows:

In the first case

Given that

Assume the par value i.e. future value be $1,000

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RATE = 9%

NPER = 7

The formula is shown below

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $863.09

In the second case

Given that

Assume the par value i.e. future value be $1,000

PMT = $1,000 × 9% = $90

RATE = 9%

NPER = 6

The formula is shown below

=-PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $876.66

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5 0
3 years ago
Prices are important to the US economy because they A. determine the quality of a product. B. are set by the US government. C. l
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The following information was taken from the records of Easter Corporation for the year ended December 31, 2019. Advertising exp
kirza4 [7]

Answer:

$162,520

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As per the given question the solution of retained earnings is provided below:-

To reach at retained earning first we need to find out the total expenses and net income which are as follows:-

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now,

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3 years ago
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