1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gavmur [86]
3 years ago
8

When expansionary monetary policy is used to increase aggregate demand, starting from equilibrium, which of the following is tru

e of the beneficial effects of growth and the painful effects of inflation?
Business
1 answer:
juin [17]3 years ago
6 0

Answer:

a. Benefits of growth;

1. Increased production to meet demand

b. Negative effects of inflation;

1. Increased opportunity cost of holding money

Explanation:

a.

Expansionary monetary policies are government incentives that aim to encourage the growth of the economy by increasing the supply of money in the economy. It involves the boosting of aggregate demand to cover for the shortfalls in private demand. Most economies that go into a recession is usually due to a lack in the aggregate demand. The main purpose of expansionary monetary policy is to encourage spending and investment by encouraging accessibility of money in the economy. When more people have access to money, they tend to invest more into the economy which encourages economic growth. On the same note, when individuals in an economy have money, it increases the availability of disposable income. This means that most people feel much wealthier which encourages them to spend more. Spending also increases demand for goods which encourages production which consequently encourages economic growth.

b.

On the contrary, when expansionary monetary policy exceeds a certain level, it leads to inflation. Inflation is basically the increase in prices in an economy due to increased demand for goods that surpasses the supply. Thus suppliers increase the price since the availability of goods and services is limited. Some effects of inflation include an increased opportunity cost of holding money and discourages investors since they are uncertain over the future.

You might be interested in
Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers thanks to their com
balu736 [363]

The competitive capability which relates to flexibility is the reason that Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers.

<h3>What is the competitive capability?</h3>

Competitive capability relates to the unique ability possess by a company over other competitors.

In this case, the Gymtastic possess the competitive capability called Flexibility.

In conclusion, the competitive capability which relates to flexibility is the reason that Gymtastic was able to serve large crowds of customers and then adjust operations to serve very few customers.

Read more about Competitive capability

<em>brainly.com/question/5319576</em>

4 0
2 years ago
When the unemployment rate is at a steady state: Group of answer choices the number of people finding jobs exceeds the number of
liraira [26]

Answer:

The number of people finding jobs equals the number of people losing jobs.

Explanation:

Unemployment rate can be defined as the percentage of unemployed workers that are present in the the labor force. The Labor force of a country comprises of both employed and unemployed individuals that are present in the country. Unemployment rate can also be described as the percentage of the total workforce of a country that is yet to be gainfully employed.

High unemployment rate poses an adverse effect on the economy, it leads to an increase in crime rate this is due to the fact that unemployed individuals have no source of income to take care of their respective families and as such have to turn to the life of crime inorder to earn money.

7 0
3 years ago
a firm decided to spent 2% of its profit onn free education to the children of nearby area. indicate the value involved in this
OlgaM077 [116]
Positive reputation in local community would attract new customer
8 0
3 years ago
Old Spanish-type houses in have huge high-pitched roo​
kifflom [539]
Sorry, what does this mean?
3 0
2 years ago
Read 2 more answers
There a 4 stocks that make up an index:
nevsk [136]

Answer:

75,000

Explanation:

The answer is

5 0
3 years ago
Other questions:
  • An important part of the onboarding process is to explain the history, values, and mission of the company. The ________ step is
    13·2 answers
  • Suzanne, a sales representative at medex, a pharmaceutical firm, was being sexually harassed by her manager, phil. after suzanne
    12·1 answer
  • Live Trap Corporation received the data below for its rodent cage production unit.
    9·1 answer
  • Jacque decides to open her own business and earns $50,000 in accounting profit for the first year. When deciding to open her own
    14·1 answer
  • Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2.
    15·1 answer
  • Gruman Company purchased a machine for $198,000 on January 2, 2016. It made the following estimates:
    5·1 answer
  • Since oligopolies can lead to either good or bad market outcomes, it is important to understand what strategic decisions firms w
    15·1 answer
  • The following facts relate to Coronado Corporation.
    10·1 answer
  • You are giving your pitch and state that you'll get 30% of this new 1.3 billion market in 2 years. A member of the audience laug
    7·2 answers
  • Name 5 types of business farms​
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!