Monetary Policy 0.0 / 5 ? EconomicsMonetary PolicyASOCR Created by: shaimaxx98Created on: 14-03-15 15:35 definition of monetary policy decisions on the rate of interest, money supply and the exchange rates 1 of 5 expansionary monetary policy decrease interest rates, increase money supply and exchange rates will depreciate 2 of 5 contractionary monetary policy increase interest rates, decrease money supply, exchange rates will appreciate 3 of 5 will monetary policy work in a recession no because it is only effective in the short run. people will also not take out loans cuz of low confidence 4 of 5 will monetary policy work in growth yes because people will take out loans and credit cards and start spending 5 of 5
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