Discuss the validity and where appropriate the invalidity, Ask an Expert

Economics

Discuss the validity and, where appropriate, the invalidity of each of the following statements, using examples to support your claims.

1. A monetary policy that aims to minimize fluctuations in interest rates promotes financial market stability and thus helps to stabilize aggregate economic activity.

2. Money supply can be pro-cyclical even when monetary policy is not. [HINT: Consider how the money multiplier changes with interest rates.]

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92197011

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