By raising and lowering short-term interest rates to keep, Ask an Expert

Economics

By raising and lowering short-term interest rates to keep inflation moving at a steady pace, many central bankers and academics thought they had finally found a monetary policy solution to conquer booms and busts of the business cycle.

a. What is this monetary policy called?

b. When would interest rates be raised and when lowered?

Please explain your answer. It is a textbook question out of "Macroeconomic Essentials - Third Edition" by Peter E. Kennedy, Chapter 10: Monetary Policy and Interest rates.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91272815

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