Answer:
c. can be implemented quickly, but most of its impact on aggregate demand occurs months after policy is implemented.
Explanation:
A monetary policy can be defined as the actions (macroeconomic policies) adopted and undertaken by the central bank of a particular country to control the money supply and interest rates so as to boost or enhance economic growth. The central bank uses monetary policies to manage inflation, economic growth through long-term interest rates and level of unemployment in a country. In order to boost economic growth, monetary policy is used to increase money supply (liquidity) while it is also used to prevent inflation by reducing money supply.
Generally, money supply comprises of checks, cash, money market mutual funds (MMF) and credit (mortgage, bonds and loans).
Typically, a monetary policy can be implemented quickly by the central bank of a particular country, but most of its impact on aggregate demand occurs months after policy is implemented.
Sales tickets
Sales tickets Telephone bill
Sales tickets Telephone bill Invoice from supplier Bank statement
<h3>What is a source document ?</h3>
The source document is the original record of a business transaction. The parties involved in a transaction, any payments made, the date, and the specifics of the transaction are all recorded in a source document.
- Typical examples of source documents are sales receipts, checks, purchase orders, invoices, bank statements, and payroll records. These are all original documents that were created as a result of a transaction and the initial components of an accounting system.
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When inflation occurs each dollar of income will buy fewer goods and services than before.
<h3>
What is inflation?</h3>
- In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
- Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
- Deflation, a continuous drop in the general level of prices for goods and services, is the reverse of inflation.
- The annualized percentage change in a general price index, or the inflation rate, is the most widely used indicator of inflation.
- The consumer price index (CPI) is frequently employed for this purpose because price increases are not uniform across the board.
- In the United States, wages are also calculated using the employment cost index.
Therefore, when inflation occurs each dollar of income will buy fewer goods and services than before.
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<span>Checking the list is the correct answer to this multiple choice question. This question deals with macroeconomic theory and the use of an expansionary money policy is likened to checking a list when dealing with economics.</span>
