Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

Which type of policy would have the most immediate impact in addressing a deflationary economic downturn?

  • Aincreasing the government’s budget surplus
  • Bincreasing liquidity by assisting banks to lend more
  • Cinvesting in projects to improve transport networks
  • Dswitching the burden of taxation from earning to spending

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