2007-03-28 11:11:13 · 2 answers · asked by itsLOVE 1 in Business & Finance ➔ Personal Finance
A loose policy would be that money is easy and relatively cheap to borrow. This allows fast growth but can stimulate inflation. The value of your currency can also be reduced in comparison to others so your goods are cheaper to them and their more expensive to you.
A tight money policy is the opposite, it is difficult and expensive to borrow money (high rates of interest). This will slow growth, reduce risk of inflation and increase the value of our money in comparison to others.
That is all that my brain took in from macro-economics 101...
2007-03-28 11:19:55 · answer #1 · answered by Michael B 2 · 0⤊ 0⤋
are you gonna make it through this class?
you're depending on answers here?? ha ha ha ha ha
2007-03-28 11:16:50 · answer #2 · answered by Jo Blo 6 · 0⤊ 1⤋