Ask Question
13 July, 06:20

Using the supply and demand for loanable funds model, explain why the central bank may aggressively expand the monetary base.

+4
Answers (1)
  1. 13 July, 07:14
    0
    Answer: This means that there may remain room for an increase in the monetary base to. Finally, we discuss reasons why the expansion of the monetary base at ... A central bank can lower longer-term interest rates even when. small, why does the Bank not aggressively try the "unconventional" policy of purchasing some specific.

    Explanation: Central banks affect the quantity of money in circulation by buying or selling government securities through the process known as open market operations (OMO). When a central bank is looking to increase the quantity of money in circulation, it purchases government securities from commercial banks and institutions.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Using the supply and demand for loanable funds model, explain why the central bank may aggressively expand the monetary base. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers