Explain Two Ways That Firms Could Be Affected by Monetary

question 34

Essay

Explain two ways that firms could be affected by monetary policy.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that balances the demands of the id, superego, and reality.

Id

A component of Freud's model of the psyche that is responsible for instinctual drives and operates based on the pleasure principle.

Aggressive Desires

Internal urges or tendencies towards hostility, confrontation, or exerting dominance over others or situations.

Pleasure Principle

In psychoanalytic theory, the driving force of the id that seeks immediate gratification of all desires, wants, and needs.