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Author Question: When economists refer to 'tight' monetary policy, they mean that the central bank is taking actions that will (Read 3135 times)

Shelles

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on: May 25, 2020

Question 1

Which of the following instruments would never be used by a central bank to change the money supply?
◦ The tax system
◦ Open-market operations
◦ Bank rate
◦ Quantitative easing

Question 2

When economists refer to 'tight' monetary policy, they mean that the central bank is taking actions that will
◦ decrease the demand for money by taxing bank accounts.
◦ contract the money supply by increasing interest rates.
◦ increase the demand for money by reducing interest rates.
◦ expand the money supply by reducing interest rates.
Essential Economics for Business ¦ Sloman, Jones ¦ 5th Edition
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Marked as best answer by Shelles on May 25, 2020

tanna.moeller

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Reply #1 on: May 25, 2020
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Shelles

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Reply 2 on: May 25, 2020
:D TYSM

dreamfighter72

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Reply 3 on: Yesterday
Wow, this really help

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