Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. explain 4 monetary transmission mechanisms (channe

Explain 4 Monetary Transmission Mechanisms (Channels of money) and explain how reductions in money impact the...

90.2K

Verified Solution

Question

Finance

Explain 4 Monetary Transmission Mechanisms (Channels of money)and explain how reductions in money impact the components ofaggregate demand, AD and output

Answer & Explanation Solved by verified expert
4.3 Ratings (877 Votes)
Monetary mechanisms that causes reduction in money supply in economy are as follows 1 Increase in bank rate An increase in bank rate raises the market rate of interest and as a result credit becomes costly Accordingly availability of credit    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Explain 4 Monetary Transmission Mechanisms (Channels of money)and explain how reductions in money impact the components ofaggregate demand, AD and output

Other questions asked by students

Biology
1.2K views

Draw the pedigree for the question below, take a picture or a scan, and upload it...

Chemistry
1.2K views

AP CHEM question! Can you please follow these steps for each: 1.) net ionic equation, 2.)...

Psychology
1.2K views

express the importance of public servants and community service. It can draw from both personal experience...

Psychology
1.2K views

How did the Beatles reflect the social and cultural changes of the 1960s??

Geometry
1.2K views

14 Find the great circle containing the points P 0 1 2 3 2 and...

Basic Math
1.2K views

Find the reference angle for radians Elin 3

Accounting
1.2K views

The following condensed income statements of the Jackson Holding Company are presented for the two...

Accounting
1.2K views

Clips Online sells subscriptions for $36 for 12 months. The company collects cash...

Accounting
1.2K views

ControlBaileys Medical Supplies also manufactures Hoyer lifts along with its wheelchairs for paralysed patients. The...

Accounting
1.2K views

Expenses for a Pizza restaurant include raw material for pizza at $5.00 per slice, $117.00...

Accounting
1.2K views

At the beginning of each period for 10 years, Merl Agnes invests $420 semiannually at...

Accounting
1.2K views

Imperial Jewelers manufactures and sells a gold bracelet for $409.00. The companys accounting system says...