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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

contractionary policyleadsto decrease in the total money supply in the economy

This interventionresultsin lower money supply in the domestic economy

This policy of the Fed to issue new dollars and buy out government bondsshould leadto an increase in the money supply in the economy

its fiscal deficitleadsto growth in money supply in the economy

a rise in interest ratewill will causethe money supply in the economy to fall

Such a policyshould leadto an increase in the money supply to the economy

Such a policyshould leadto an increase in the money supply in the economy

the marketleadsto the increase in money supply in the economy

This processresultsin the increased money supply in the economy

Quantitative easing ... likelyto leadto an increase in the money supply in the economy

loanscauseda decrease in the money supply ... shrinking the economy

either an expansionary policyleadsto increase in the money supply in the economy

The increase in the demand for the bank reservesresultsin the increase in the money supply in the economy

The lowering of Fed funds ratehas leadto increase in money supply in economy

rupee currencywill causereduction in money supply in the economy

rupee currency ... circulationwill causereduction in money supply in the economy

Central bank attemptsto influencethe economy through money supply levels

the powerto influencethe economy by increasing or decreasing the money supply

to pump money in the economythereby contributingtowards decrease in money supply

to pump money in the economythereby contributingtowards a decrease in money supply

a monetary authoritycould influencethe money supply to the benefit of the economy

an important factorcausingvariation in money supply in the economy

Monetary policyinfluencesthe extent of money supply in an economy

The increase in interest ratewould leadto less money supply in the economy

This aggressive lowering of interest ratescausedexcess money supply in the economy

the required reserve ratio the Fedcan causea decrease in the functioning money supply

reserve ratio the Fedcan causea decrease in the functioning money supply

the Fedcan causea decrease in the functioning money supply

bondsresultsin a decline in the money supply

a ) bank failures during the Great Depressionresultedin a decline in the money supply

b ) bank failures during the Great Depressionresultedin a decline in the money supply

sharply raising interest rates and contracting loans and depositscausinga decline in the money supply

the Fedcan influencethe money supply in the economy

central bankinfluencesthe money supply in an economy

the Central bankdirectly influencesthe money supply in an economy

a central bankinfluencesthe money supply in an economy

the Central bankinfluencesthe money supply in an economy

what the central bank doesto influencethe money supply in the economy

by the interest rate increase(passive) caused bythe reduction in money supply

open market operationsa central bankinfluencesthe money supply in an economy

to appreciation of the domestic currencywould leadto appreciation of the domestic currency

inflation and house prices to increasecausesinflation and house prices to increase

Inflation(passive) is caused byInflation

an increase in general price level of commodities which brings about inflationary pressure in the countrycausesan increase in general price level of commodities which brings about inflationary pressure in the country

to increase in demand of services and goodswould leadto increase in demand of services and goods

prices to risecausingprices to rise

to inflation , which will lower the real value of government spendingcan leadto inflation , which will lower the real value of government spending

interest rates to rise , rates of return on domestic currency deposits to rise , and the domestic currency to appreciatecausesinterest rates to rise , rates of return on domestic currency deposits to rise , and the domestic currency to appreciate

interest rates to risecausesinterest rates to rise

A ) its currencycausesA ) its currency

its currency to appreciatecausesits currency to appreciate

a general decline in prices and wagescausesa general decline in prices and wages

to inflationcan ... leadto inflation

to the economic recovery / boosthas ledto the economic recovery / boost

Increase of the rate of interest(passive) is causedIncrease of the rate of interest

in the great depressionresultingin the great depression

a fall in the general price levelcausesa fall in the general price level

higher interest rates , which results in decline in investment thus sucking money out of the hands of the consumers , thereby dampening spending which might result in economic declinetypically promptshigher interest rates , which results in decline in investment thus sucking money out of the hands of the consumers , thereby dampening spending which might result in economic decline

in inflation ... increase incould resultin inflation ... increase in

interest rates and the inflation rateinfluencesinterest rates and the inflation rate

when banks make loans and when the loans are paid offis influencedwhen banks make loans and when the loans are paid off

to higher inflationleadsto higher inflation

a decline in pricesmay causea decline in prices

a decrease in output and an increase in the real interest ratewill causea decrease in output and an increase in the real interest rate

a ) a decrease in output and an increase in the real interest ratewill causea ) a decrease in output and an increase in the real interest rate

a corresponding decrease in production / employment resulting in a recessioncauseda corresponding decrease in production / employment resulting in a recession

a corresponding decrease in production / employment causing a recession insteadcauseda corresponding decrease in production / employment causing a recession instead

a leftward shift in lm curve and will lead to the rise in interest rate and fall in the level of incomewill causea leftward shift in lm curve and will lead to the rise in interest rate and fall in the level of income

the AD curve to shift left , further decreasing the price level and creating a small decrease in outputwill causethe AD curve to shift left , further decreasing the price level and creating a small decrease in output

interest rates to increasecausesinterest rates to increase

to a shortage of moneywill leadto a shortage of money

to higher interest rates , which reduce investment and thereby lower output throughout the economywould leadto higher interest rates , which reduce investment and thereby lower output throughout the economy

a decrease in demandwould causea decrease in demand

to an increase in the equilibrium interest ratewill leadto an increase in the equilibrium interest rate

interest rates to rise the increase in interest ratescausesinterest rates to rise the increase in interest rates

a decrease in unemploymentcan causea decrease in unemployment

a decrease in prices for the consumerwill causea decrease in prices for the consumer

prices(passive) caused byprices

the rate of interest to rise and this will cause investment to fallwill causethe rate of interest to rise and this will cause investment to fall

a decrease ( leftward shift ) of the aggregate curvecausesa decrease ( leftward shift ) of the aggregate curve

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Smart Reasoning:

C&E

See more*