When the housing prices reduced and the economy slowed down significantly, the Federal Reserve started cutting its discount rate from 5.25 in June 2007 to 0% by the end of 2008. The trend in money supply is an important measure of whether a country is following an expansionary or restrictive monetary policy. Three tools that are prime examples of the monetary policy are open market … It's how the bank slows economic growth.Inflation is a sign of an overheated economy. c. Increasing the money supply; Jerome Powell. Quantitative Easing. 19) Which of the following is an example of expansionary monetary policy? The following are the main objectives of monetary policy- (1) Stability of Exchange Rates: This is one of the principal objectives of Monetary Policy. The central bank announces its intention to buy assets, such as government bonds. Another expansionary technique is quantitative easing, or QE. A very recent example of the expansionary monetary policy was during the Great Recession in the United States. There are many tools that are an example of the monetary policy. Monetary policy is the means by which the Federal Reserve manipulates the U.S. money supply in order to influence the U.S. economy 's overall direction, particularly in the areas of employment, production, and prices. Contractionary monetary policy is when a central bank uses its monetary policy tools to fight inflation. produce. Monetary Policy refers to the policy which is formulated and implemented by central bank of every country. answer choices . Which of the following is an example of discretionary fiscal policy? a. a) an increase in the reserve requirements ratio b) a sale of government bonds by the FED c) a purchase of government bonds by the FED d) an increase in the Discount Rate e) none of the above 20) Which of the following statements is correct? answer choices . Which type of monetary policy involves increasing the growth of the money supply? What is Monetary Policy? A. a tax cut passed by Congress to fight a recession B. income tax receipts increasing during an expansion due to rising incomes C. unemployment insurance payments increasing during a recession Increasing taxes; Jerome Powell. SURVEY . It's also called a restrictive monetary policy because it restricts liquidity. contractionary monetary policy. It is a powerful tool to regulate macroeconomic variables such as inflation Inflation Inflation is an economic concept that refers to increases in the price level of goods over a set period of time. Tags: Question 19 . b. Decreasing taxes; Congress and the President. In international trade, transactions take place on the basis of a fixed rate of exchange. clothing. 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which of the following is an example of monetary policy

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