Consider interest declines in the coming few days, how does this contractionary monetary policy reflect on the macroeconomic equilibrium? Consider the economy was initially in an equilibrium condition and use graphs to reflect on this economic dynamics.

2. Read the article below and answer the following question:

https://www.washingtonpost.com/outlook/2019/04/19/economists-are-rethinking-monetary-fiscal-policy-thats-potentially-positive-development/

Why are economists rethinking the fiscal and monetary policy?

Answer rating: 100% (QA)

Introduction A contractionary monetary policy characterized by declining interest rates can have implications for the macroeconomic equilibrium Typica... View the full answer