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Which of the following are not included among the nonconventional monetary policies that can shift the...

Which of the following are not included among the nonconventional monetary policies that can shift the aggregate demand? curve??(Checkall thatapply?.)

A.Liquidity provision.

B.Asset purchases.

C.Management of expectations.

D.Regulation Q.

E.Bank capital requirements.

Nonconventional monetary policies shift the aggregate demand curve by

A.lowering financial frictions.

B.lowering the real interest rate for investments.

C.lowering barriers to the efficient functioning of financial markets.

D.all of the above.

E.A and B only

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Homework Answers

Answer #1

1) THe asnwer is D -) Regulation .

because a nonconventional monetary policies are often used when the interest fall close to zero , when the economy is in deep reccession and conventional monetary polices deos not work. an unconventional monetary polices include , credit easing,  quantitative easing, forward guidance, and signaling.

2) The asnwer is B-) LOwering the real interest rate for investments.

because nonconventional monetary policies shift the aggreagte demand curve by lowering the real interest rare for investment to stimulate the investment spending and thus shift the AD curve.

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