Respuesta :

The answer is: Lower interest rates

Short-term monetary policy typically aimed to make economic change within i year or less.

Usually, this type of policy is made if the government wants to make a rapid expansion in the economy. By making the interest rate lower, many people would be interested to borrow money to expand their business and hire more employees. This would make the amount of Gross Domestic Products increased within a short period of time.

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A short-term monetary policy action would MOST LIKELY lower interest rates

Further explanation

Monetary policy is the central bank's actions and communications that manage the money supply. Monetary policy advantages is the liquidity to create economic growth increases and also it can decrease the liquidity to prevent inflation.

The Federal Reserve conducts the nation's monetary policy by managing the level of short-term interest rates. It also contributes to influence the overall availability and credit cost in the economy.

There are four  tools to achieve its monetary policy goals such as the discount rate, reserve requirements, open market operations, and interest on reserves.

Monetary policy affects how much prices are rising and it is called the rate of inflation. Thus, a low interest rate tends to result in more inflation. In the short term of monetary policy action, we need to balance our target of low inflation by supporting economic growth and jobs. Therefore in a short-term monetary policy action would MOST LIKELY lower interest rates

Learn more

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Answer details

Grade:     8

Subject:  business

Chapter:  Monetary & Fiscal Policy

Keywords: monetary policy, Monetary, Fiscal Policy, short-term,  action

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