Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

In a recession, a government’s spending is greater than its tax income. Which policy could stop interest rates from being pushed upwards?

  • Aprivatisation of government owned enterprises
  • Bpurchases of government bonds by the country’s central bank
  • Csales of foreign currency from the official reserves
  • Dsales of government bonds to the general public

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