Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

Which government monetary policies would be the most effective during a global recession?

  • Aallowing the rate of interest to fluctuate and increasing business taxation
  • Bincreasing the budget surplus and raising tariffs on imports
  • Ckeeping the rate of interest very low and increasing the money supply
  • Draising the rate of interest and restricting the money supply

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