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mr_godi [17]
3 years ago
7

Trying to reduce unemployment using expansionary monetary policy during stagflation will?

Business
1 answer:
Anton [14]3 years ago
5 0

Answer:

A

Explanation:

A stagflation is a period of inflation , high unemployment and stagnation of the economy.

An expansionary monetary policy is a policy undertaken by the Central Bank of a country to increase the money supply in the economy.

Increasing money supply in a period of stagflation would make inflation worse.

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XYZ Corporation is headquartered in the United States and is opening a new office in Singapore. The company decides to send a U.
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Crowding out refers to the situation in which Group of answer choices borrowing by the federal government raises interest rates
goldenfox [79]

Answer:

Crowding out refers to the situation in which borrowing by the federal government raises interest rates and causes firms to invest less - option A.

Explanation:

Generally, a condition whereby a persistent government borrowing decreases the likelihood of the government repaying the borrowed loan or credit and consequently raises the interest rate is referred to as Crowding out. This situation would cause a decline in private investment level by the companies or firms.

Therefore, borrowing by the federal government raises interest rates, causing firms to invest less is the correct answer.

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