Purchase Solution

Contractionary policies

Not what you're looking for?

Ask Custom Question

How might this adage be relevant to expansionary (as opposed to contractionary) monetary policy?

Purchase this Solution
Solution Summary

Contractionary policies are contextualized.

Solution Preview

It is widely agreed that monetary policy has an asymmetric impact on the economy. Contractionary policies seem to work wonders in the sense that they are better off in achieving the stated goals, while exapansionary policies are not as successful. This is very similar to the adage that you can take the horse to the water, but you cannot make the horse drink the water. The idea is that you can provide the market with what you think is most needed, ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Expansionary and Contractionary Policies

    336412 Expansionary versus Contractionary Policies In terms of expansionary or contractionary policies, which do policy do you see more in line with the politics of the Democratic Party?

  • Contractionary Fiscal and Monetary Policy

    - There are differences in terms of tools of these policies. Fiscal policy affects the spending and taxation policies of the government, whereas the monetary policy affects the interest rates and money supply.

  • Contractionary Fiscal Policy

    Contractionary fiscal policy is one of several stabilization policies available to the federal government to address business-cycle problems.

  • Fiscal Policies during Recession and Economic Boom

    Note: Either Expansionary or contractionary fiscal policies must not be permanently implemented. When the economy shows signs of recession, expansionary policies have to be in effect.

  • Monetary Policy's effects on the economy

    98129 Monetary Policies I am trying to write a paper on monetary policies and need some help understanding how expansionary and contractionary monetary policies impact the various components of U.S. economy.

  • Contractionary and expansionary fiscal policy

    Impact of fiscal policies on Health care organization Expansionary fiscal policy involves government attempts to increase Aggregate demand. It will involve higher government spending and / or lower tax.

  • Discuss expansionary and contractionary monetary policies.

    259651 Discuss expansionary and contractionary monetary policies. Explain the difference between expansionary monetary policy and contractionary monetary policy. Give a detailed explanation including examples. Give work cited if needed.

  • Business and Consumer Expectations Concerning Monetary Policy

    They must be reassured that monetary policies exist to protect their investments, in particular, and the overall economy, in general. Monetary policies exist to protect the economy from either recession or depression.

  • Fiscal Policy

    Decreasing spending and increasing taxation are both contractionary policies. D. 8. Multipler = 1/1-.9 = 1/.1 = 10 Need to decrease spending by 300/ 10 = $30 billion. D. Keynes and automatic stabilizers

View More Related Solutions