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Answer to Question #16122 in Macroeconomics for brian Mwangelwa

Question #16122
1.suggest three policy issues you may come up with in order to stabilize the economy, and in each case explain.
Expert's answer
1. Tax policy. According to country's needs government can use restriction
policy or expansion policy, using appropriate tools to stabilize economic
situation in country.
2. Money supply regulation by using Open market
operations, direct control and Required Reserve Ratio. this is one of the main
way to stabilize economy
3. Stimulating or distimulating business
environment. Actions of this type can drive a crutial impact on the economy. By
stimulating or distimulating business government can lead a market, so they can
control economy in the most important areas.

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