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3 years ago

When governments inject money into the economy, which of the following are their goals? Check all that apply.

History

2 answers:

tresset_1 [31]3 years ago

6 0

Answer:

reducing unemployment

improving economic stability

encouraging competition

improving production

Explanation:

Stimulating monetary policy consists in the following: central bank taking measures to increase the supply of money. Opportunities of commercial banks are increasing → banks are issuing more loans → money supply is increasing multiplicatively → the interest rate (loan price) is falling → companies are happy to take cheaper loans → investment costs are increasing → total demand is increasing → production is increasing multiplicatively.

In the short term, monetary policy can affect economic indicators, the rate of unemployment, and the rate of output.

Fantom [35]3 years ago

5 0

Answer:

reducing unemployment

improving economic stability

encouraging competition

improving production

Explanation:

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