Apply Concepts How might the proper use of monetary policy affect economic stability?

Social Studies

1 answer:

vitfil [10]4 years ago

8 0

Answer:

Proper use of monetary policy positively affects economic stability. 

Explanation:

Monetary policy generally aims to achieve economic growth and stability. Monetary policy is very important to keep a check on the economy and prevent inflation. It was after the economic crisis in the US brought about by the Second World War, the importance of monetary policy was realised. 

Formulation of monetary policy is the function of Federal Reserve System or Fed which is the country’s central bank. Instruments used by Fed to control the supply of money are open market operations, discount rates and reserve requirements. 

Fed buys and sells government securities in open market operations. Discount rate is the rate at which money is lent to commercial banks. Fed changes this discount rate according to the state of the economy. When the monetary policy is formulated properly economic stability can be achieved. 

You might be interested in

What is a wildlife corridor and which limiting factor are they trying to overcome?

Debora [2.8K]

Wild life corridor is an area that resided specifically to separate wild plants and animals with human activities.
They are trying to overcome colonization, a limiting factor that states in order to fully test survival capabilities of the organism, we need to give them the freedom to move from one area to another.

6 0

3 years ago

Create political and physical maps of the United States.

Elina [12.6K]

Answer: Here are the images that should help you.

Explanation:

GG good day.

3 0

3 years ago

I need help on 7 and 8 please

Gwar [14]

Answer:

7. C

8. A

Explanation:

5 0

3 years ago

Sociologists have the task of discovering how _____ modify/modifies _____, particularly to determine how "different" becomes tra

sineoko [7]

Sociologists have the task of discovering how social factors modify/modifies biology, particularly to determine how "different" becomes translated into "unequal." Sociologists study the society, patterns of social relationships and social interaction. This includes also how these relationships influence biology as a whole.

7 0

4 years ago

The ___________ suggests that they can increase their total output of these two goods if jimmy focuses his production on footbal

Gnesinka [82]

The Law of Comparative Advantage suggests that they can increase their total output of these two goods if jimmy focuses his production on footballs while James focuses his production on athletic shoes.

<h3>What is Law of Comparative Advantage?</h3>

Comparative advantage can be described as the economy's ability that a comp[any posses in produce a particular good or service at a lower opportunity cost compare to her trading partners.

Therefore, Law of Comparative Advantage suggests that they can increase their total output of these two goods if jimmy focuses his production on footballs while James focuses his production on athletic shoes.

Learn more about Law of Comparative Advantage at:

brainly.com/question/12291750

#SPJ1

4 0

2 years ago