Answer to Question #16122 in Macroeconomics for brian Mwangelwa
1.suggest three policy issues you may come up with in order to stabilize the economy, and in each case explain.
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.