What is the main problem of monetarist policy?

One difficulty with such a policy, of course, is that the Fed would be responding to past economic conditions with policies that are not likely to affect the economy for a year or more. Another difficulty is that inflation could be rising when the economy is experiencing a recessionary gap.

What does the dollar index do?

The dollar index tracks the relative value of the U.S. dollar against a basket of
important world currencies. If the index is rising, it means that the dollar is
strengthening against the basket – and vice-versa.


What is the basic definition of economics?

Economics is the study of scarcity and its implications for the use of resources, production

of goods and services, growth of production and welfare over time, and a great variety of

other complex issues of vital concern to society.

What is the meaning economic theory?

What are the 4 economic theories?

The 4 economic theories are supply side economics, new classical economics, monetarism and

Keynesian economics.

Supply-side economics is a theory that maintains that increasing the supply of goods and

services is the engine for economic growth. It advocates tax cuts as a way to encourage

job creation, business expansion, and entrepreneurial activity.

Keynesians believe that, because prices are somewhat rigid, fluctuations in any component

of spending—consumption, investment, or government expenditures—cause output to change.

If government spending increases, for example, and all other spending components remain

constant, then output will increase.

What is classical economic theory?

What are the main features of classical economics?

It focused on economic growth and economic freedom, advocating laissez-faire ideas and belief

in free competition. The classical economic theory propagated the countries to move from

the monarch rule to a capitalistic democracy factored with self-regulation.

What does consumer mean in economics?

Consumers are people who buy or use goods and services to satisfy their wants. When you eat

your dinner, you will be a


What is the study of consumer economics?

Image result for consumer economics definition

Consumer economics deals with the question of how the consumer allocates his scarce means over

a variety of different commodities and services. The consumer is thought to be able to order

the various sets of quantities of goods and services that fit in the limited budget according

to his or her preferences.


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