Expansionary and contractionary monetary policy

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Q-1

What are the characteristics and mechanisms of expansionary and contractionary monetary policy? Is monetary policy conducted independently in the U.S? Explain and elaborate.

Q-2

Some economist believe that the 2008 economic recession and financial crisis was caused by a "perfect storm". Explain what you believe caused the 2008 recession and financial crisis.

Q-3

Explain the creation of money from excess reserves and the multiple deposit expansion in the banking system. How does the multiplier affect the supply of money?

Q-4

The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage. Explain the difference and give an example.

Reference no: EM13757099

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