4.4 monetary policy

Question 1

money supply

Answer 1

the amount of money supplied by a economy in a given time period

Question 2

monetary policy

Answer 2

demand side policy that determines interest rates and exchange rates and the money supply in an economy

Question 3

recession

Answer 3

negative economic growth

Question 4

how to fight a recession(expanisonary monetary policy)

Answer 4

interest rates are lowered , money supply increases buissnes borrow more consumer spend more

Question 5

how to fight inflation(contractionary monetary policy)

Answer 5

decrease money supply and increase interest rates to decrease supply