Week 4_4 Monetary Policy in Practice

Get to know Basic Concepts:

-- Monetary policy will be aimed at decreasing interest rates.

-- To inflate (boost) the economy the central bank will decrease interest rates.

-> on the domestic market, both investments and consumer spending will increase.

-> real GDP will increase.

Question:

What is the effect of Monetary Policy's effect on Consumption and Investment?

Discuss with fellow students in Discussion Forum.

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