Answer: Say the Federal Reserve decides to reduce interest rates to stimulate economic growth. They do this by purchasing government securities over the open market with newly created money. The bank will take this new money and lend it out (or purchase securities, it doesn't matter due to arbitrage). This has the effect of increasing the supply of loanable funds, pushing down the interest rate.
Now just because the interest rate is lowered does not mean that the expansionary monetary policy will have its desired effect immediately. Lower interest rates encourage borrowing, and increased borrowing can increase employment, GDP, etc. There is a lag between the reduction in interest rates and its effects on the real economy. People will not respond to the lower interest rates by borrowing and hiring immediately; the effect can take 1-2 years.
Explanation:
Answer:
It would be Einstein Relativity theory and Freud's idea of subconscious thought.
Explanation:
Before Freud introduced his theory, almost all experts in the field of psychology believe that our mind is only controlled by conscious force. The introduction of Freud's theory change experts analyze psychological problems. Einstein introduced the relativity theory that improve humans' understanding on how black holes interact with the universe
Answer: theory y
Explanation:
Theory Y managers have an optimistic, positive opinion of their people, and they use a decentralized, participative management style. This encourages a more collaborative , trust-based relationship between managers and their team members.
A shift in aggregate demand can cause an economic expansion and over time the effect on the expected price level is rising and shifting aggregate supply to the left. Hence, the correct option is (D).
<h3>What is Aggregate Demand?</h3>
Aggregate demand is a measurement of the demand that occurs for a product or service in a nation. The measure used in aggregate demand is money. Therefore, aggregate demand will show the amount of money spent by consumers on a good or service at a certain price level. Aggregate demand measured over a long period of time will also reflect gross domestic product (GDP).
Learn more about aggregate demand at brainly.com/question/1490249
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