Question

discuss how South african's central bank (SARB) can influence aggregate demand and inflations by adjusting the asset requirement of commercial banks

Answer 1

Answer:

Monetary policy is the means by which central banks manage the money supply to achieve their goals. The SARB uses interest rates to influence the level of inflation. National Treasury, in consultation with the SARB, sets the inflation target, which acts as a benchmark against which price stability is measured.