If the Fed needs to conduct expansionary monetary policy, it must b) decrease the required reserve ratio.
Expansionary economic coverage works via increasing the cash supply faster than traditional or lowering short-time period interest charges. it's far enacted by way of vital banks and comes about thru open marketplace operations, reserve requirements, and setting interest costs.
The Federal Reserve has 3 expansionary financial policy methods: lowering interest rates, decreasing banks' reserve necessities, and shopping for authorities' securities.
Expansionary monetary policy is genuinely a policy that expands (will increase) the delivery of money, while contractionary economic policy contracts (decreases) the supply of a rustic's forex.
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Answer:
D. The supply of a product increases as its price increases
Explanation:
Supply is the volume of a product or a service that sellers are willing to sell in the market at a stated price. The law of supply explains the relationship between price and the quantity suppliers are willing to sell.
The law asserts that as the price increases, suppliers will supply more quantities of a product. A price decrease will cause suppliers to supply a lower quantity. Suppliers are profits motivated. A price increase results in higher profits hence more supply.
Answer:
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