Which of the following is a tool of monetary policy used by central banks to control the money supply? a) Fiscal policy b) Discount rate c) Trade policy d) Progressive taxation

Which of the following is a tool of monetary policy used by central banks? a) Fiscal deficit b) Tariffs c) Open market operations d) Corporate income tax

Which of the following policy actions by the Central Bank is likely to increase the money supply? Select one: Selling government bonds All of these will increase the money supply Increasing the discount rate Reducing reserve requirements

Monetary policy as one of the macroeconomic policies is generally implemented in line with the cycle of economic activity (business cycle). Based on this, answer the following questions: a) Explain what monetary policy is appropriate to apply when there is a decline in GDP, economic growth slows and there is a decline in the prices of goods? b) Explain what monetary policy is appropriate to apply when there is an increase in the amount of real output or economic growth and an increase in the price of goods? Explain!