The loose monetary policy is the policy that the federal reserve use if the economy were entering into recession. In order for the federal reserve to fight the recession, they should support legislation which has higher taxes for wealth. They should also put into place very strong regulatory rules that banks and cooperation can't get across.
The three federal reserve tools which are used to undertake an easy monetary policy includes reserve requirement, discount rate, and open market operations. Federal reserve altered monetary policy in order to influence the amount of credit and money in U.S economy and the interest rates.
The fourth question is correct (D).
To understand this answer, one must understand the mechanism of correction of inflationary processes.
Inflation erodes the purchasing power, thus, the elderly with fixed income will be harmed and not beneficiaries in an inflationary process.
<u>The main mechanism to reduce inflation is the interest rate.</u> In this way, when inflation happens, the Federal Reserve raises the interest rate. This makes public bonds profitable and economic agents begin to use money by buying bonds, reducing the circulation of money and consequently lowering inflation.
For banks that have made adjustable rate loans, this will be a good thing, as interest on the contracts will increase along with the increase in the interest rate, which will make the contracts yield more. Therefore, banks will be the biggest beneficiaries. However, this will happen only when the rate is adjustable.
I think its A <span>US naval battleships
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Answer:
driving may have became automated.
Explanation:
While driving Jim may be still supervising and ready to take actions but now with the help of an automated driving system, the machinery performed the task of decision making and operating the automobiles. Therefore Jim become a little relaxed to talk to passengers while operating an automated driving system. An automated system controls the vehicle and humans could leave the responsibility of driving to the system.
