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15 cards from this deck
Central banks alter money supply, exchange rates, and interest rates to influence economy
Central bank acts when inflation above OR below target
Central bank acts only when inflation rises above target
Rate cuts have little effect on AD as agents prefer holding liquid assets
Central bank prints money to buy bonds, boost money supply and lower interest rates
Reduces consumer spending
Increases business investment
Reduces inflation by decreasing demand
Shifts AD right
Controlled by central bank, fixed at any given point
Around 2%
Government bonds, corporate bonds, and mortgage-backed securities
Currency value rises relative to another currency
Exports cheaper, imports more expensive
Strong Pound Imports Cheap Exports Dear
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