Use a figure to illustrate the ineffectiveness of monetary policy to spur on an economy under a fixed exchange rate
What will be an ideal response?
The initial equilibrium rests at point 1. If the central bank wishes to use monetary policy to increase output from to , then they might buy domestic assets and shift the AA curve outward. However, the central bank must maintain a fixed exchange rate , so would have to sell foreign assets for domestic currency, returning the economy to point 1.
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Under an upward sloping supply curve for land, the economic rents to land ________ as the demand for land shifts rightward
A) decrease B) increase C) remain the same D) We do not have enough information to answer this question.
If product price decreases, then:
a. MP will increase. b. MFC will increase. c. MRP will increase. d. MRP will decrease.
When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include:
A. fences B. walkways C. sewer systems D. streets
The special cost structure that is necessary for a firm to adopt a peak-load pricing policy is:
A. economies of scope. B. economies of scale. C. constant marginal cost. D. limited capacity.