Answer: Say the Federal Reserve decides to reduce interest rates to stimulate economic growth. They do this by purchasing government securities over the open market with newly created money. The bank will take this new money and lend it out (or purchase securities, it doesn't matter due to arbitrage). This has the effect of increasing the supply of loanable funds, pushing down the interest rate.
Now just because the interest rate is lowered does not mean that the expansionary monetary policy will have its desired effect immediately. Lower interest rates encourage borrowing, and increased borrowing can increase employment, GDP, etc. There is a lag between the reduction in interest rates and its effects on the real economy. People will not respond to the lower interest rates by borrowing and hiring immediately; the effect can take 1-2 years.
Explanation:
Answer:
Personal family system
Explanation:
A family in which parents and children all participate in negotiations as to where to go on vacation, what college the child will go to, how to handle family holidays, and other decisions is operating under personal type of family system where parents and children all participate in negotiations of everything they do such as where to go on vacation, what college the child will go to, how to handle family holidays, and other decisions.
Answer: Government is bound to provide health facilities to sustain good health of people of the society.
Explanation:
The government takes measures to bring equality in terms of healthy life style irrespective of the socioeconomic status of the members of the population.
1. The government ensures that people who are under low economic status may receive the health cover.
2. There are special health insurance scheme which poor people can afford easily.
3. There is special wards for people with low economic status to avail treatment in super speciality hospitals.
4. Free medication ensures that every patient can receive medicine.
